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Merger between two hospitals in Amsterdam requires further investigation

The Academic Medical Center (AMC) and het VU University Medical Center (VUmc), both based in Amsterdam, need to apply for a merger license with the Netherlands Authority for Consumers and Markets (ACM) first before they can proceed with their planned merger. ACM has come to this conclusion after completing its preliminary investigation. Further investigation into the merger’s effects on complex hospital care is required.

The two Amsterdam-based university hospitals each offer both basic care and complex hospital care. In addition, they also carry out medical research, and they provide training for doctors and medical specialists. ACM has established that no anticompetitive problems will emerge in the research and educational activities.

Further investigation needed into hospital care

ACM has concluded that competition in complex hospital care may be restricted as a result of the planned merger. Complex hospital care includes complex surgical procedures, patients with multiple conditions, or treatments that require highly specialized equipment. Together, these two hospitals control a large share of the market for complex hospital care in the greater Amsterdam area. If these hospitals decide to apply for a merger license, ACM will launch a more detailed investigation. In that second investigation, ACM will look into the planned merger’s effects on complex care with regard to patients and health insurers. ACM will assess whether or not patients will continue to have sufficient hospitals to choose from after the merger. Health insurers are currently critical of the planned merger because they see risks to their bargaining positions. ACM will assess whether or not health insurers will continue to be able to negotiate good purchase agreements for their customers with regard to price and quality.