NMa to Investigate Merger of Limburg Healthcare Institutions Further

Following an initial investigation, the Netherlands Competition Authority (NMa) concluded that a dominant position may arise or be strengthened on the market for nursing-home care, rest-home care and homecare in the region of Midden-Limburg as a result of the merger of three healthcare institutions, namely Stichting Proteion Zorgcentra (Proteion), Stichting Thuiszorg Midden Limburg (TML) and Stichting Land van Gelre en Gulick (LvGG). This merger may restrict competition. For this reason, NMa has notified the parties that a licence is required for the realisation of this merger.

On the basis of the investigation conducted up until now into the definition of the relevant market in the case of this merger, NMa is of the opinion that it is plausible that the markets for homecare and nursing-home care do not extend beyond the region of Midden-Limburg. In addition, the market for rest-home care does not extend beyond the municipalities in which the respective home is located and the neighbouring municipalities. This conclusion is based, for instance, on data relating to the origin of the clients of healthcare institutions in the region of Midden-Limburg and from data on factors which play a role in the choice of a healthcare institution by (potential) clients. After the merger, the parties will have a large joint share of the nursing-home care, rest-home care and homecare markets. In addition, the merger may limit appreciably the freedom of choice which clients in the region of Midden-Limburg have because an important option will disappear as a result of the merger. All of these factors combined could mean that a dominant position will arise or be strengthened on these markets.

In the licensing phase NMa will conduct a more extensive investigation, for instance into the exact definition of the relevant geographical markets for rest-home care, nursing-home care and homecare. If Proteion, TML and LvGG apply for a licence, NMa is required to take a decision within 13 weeks on whether the merger is or is not allowed.