NMa: Will further investigate merger health organisations Limburg

After an initial investigation, the Netherlands Competition Authority (NMa) concludes that the merger of three health organisations in the regions of Noord and Midden-Limburg may lead to the strengthening of a dominant position. The issue at hand concerns the intended merger between the parties Zorggroep Noord-Limburg (ZgNL), Thuiszorg Midden-Limburg (TML) and Land van Gelre en Gulick (LvGG). The intended merger may restrict competition. The NMa, therefore, has decided that this concentration requires a license.

The organisations involved provide care services in convalescent and nursing homes, as well as personal home care and maternity care services. The NMa's concerns focus on personal home care services in the region of Midden-Limburg, where a dominant position may be strengthened as a result of the merger. With regard to care services in convalescent and nursing homes and maternity care services, the NMa does not envisage problems in the field of competition.

In the region of Midden-Limburg, TML already is a strong party in the home care market. After the merger, the position of TML would be strengthened in the region of Midden-Limburg, because of the disappearance of one of its competitors (LvGG). This may result in a more limited freedom of choice for health care buyers.

The NMa states that a license request must be submitted in order to bring about this merger. On submission of the request, the NMa will perform a more thorough-going investigation into the consequences of the merger and will decide within a period of 13 weeks whether or not the merger can be cleared.

The health sector is an important area of attention for the NMa in 2006, as set out in the NMa Agenda 2006.