NMa has concerns about planned merger between two Dutch supported-housing providers
Having carried out a preliminary investigation, the Netherlands Competition Authority (NMa) has concluded that the merger between mental health care provider GGZ Delfland and social-services center group PerspeKtief may impede competition. The NMa has identified potential concerns particularly on the market for supported housing for people with mental disabilities, which includes supported independent living and community residential care centers, in the western Dutch province of South-Holland, where both health care provider are active. The NMa wishes to further investigate the effects of the planned merger.
GGZ Delfland and PerspeKtief are virtually the only players on the mental health care market in the metro area of the Dutch city of Delft. Furthermore, with regard to supported housing, the activities of GGZ Delfland are closely related to those of PerspeKtief. If the merger went through, the primary source of competitive pressure on PerspeKtief would disappear, being GGZ Delfland, which has the ability to offer supported housing in the short term.
In addition, the NMa's concerns are focused on the fact that the merger may result in exclusive referrals of customers within the newly merged undertaking. This could discourage other supported-housing providers who would like to become active in this region from actually entering the market, fearing a lack of sufficient access to these customers. In its final decision based on further investigation, the NMa will be addressing these concerns.
In an opinion of its own, the Netherlands Healthcare Authority (NZa) has expressed similar concerns about this merger, and believes that it could indeed have adverse effects on the public interests of quality, accessibility and affordability.
Supported housing is a form of health care that is offered to an individual with mental problems in case he/she does not need to be hospitalized for treatment, but who is nevertheless in need of some form of support and supervision.