NMa: license required for merger health organisations Amstelland

The Netherlands Competition Authority (NMa) has concluded after an initial investigation that the merger of Stichting Amstelring and Stichting Zonnehuisgroep Amstelland may result in the emergence or strengthening of a dominant position in the markets for care services provided by convalescent and nursing homes. This may restrict competition in the health agency region of Amstelland en Meerlanden. The NMa has therefore decided that a license is required in order for this merger to pass. This will involve a further NMa investigation into the effects on competition.

Both parties are active in the health agency region of Amstelland en Meerlanden, consisting of the municipalities of Haarlemmermeer, Aalsmeer, Uithoorn, Amstelveen and Ouder-Amstel. Amstelring is active in the area of home care and care services provided by convalescent and nursery homes. Zonnehuisgroep Amstelland mainly focuses on care services provided by convalescent and nursery homes. The NMa foresees possible problems with regard to competition in the markets for care services provided by convalescence and nursing homes. The competition authority does not foresee any problems in the home care markets.

The merger limits the choice for clients in the region of Amstelland and Meerlanden as to care services provided by convalescent homes. The parties involved here dispose of a considerable joint market share. Furthermore, little competition pressure seems to be exerted by other convalescent homes in the region.

With regard to the market for care services provided by nursery homes, the NMa is intent on setting up a further investigation into Amstelring's role as a 'gatekeeper'. For the elderly, the home care services provided are often a preliminary to entering a nursing home. Stichting Amstelring has a very strong position in the area of home care. If the home care clients of Amstelring are referred to nursing homes participating in the group that is to be newly established, other nursing homes in the region may possibly be left with empty beds. This may push competing nursing homes from the market. Such circumstances warrant further investigation, according to the NMa.

The NMa has consulted the Netherlands Health Authority (to be established shortly). In its point of view, the Authority endorses the NMa's conclusions.

In case parties submit a license application, the NMa will have to decide whether or not to allow the merger within a period of 13 weeks.