NMa launches more detailed investigation into planned health-care merger in central Netherlands

The Netherlands Competition Authority (NMa) will launch a more detailed investigation into the planned merger between two health care institutions in North Veluwe, a region in central Netherlands. According to the NMa, the concentration between Stichting Zorggroep Noordwest-Veluwe and Stichting Het Baken may impede competition on the markets of psychogeriatric and somatic nursing home care in the region of the Dutch towns of Harderwijk, Nunspeet and Oldebroek.

If the merger went through, the health care institutions in question could get a market share of anywhere between 50 and 100 per cent in a number of markets for psychogeriatric and somatic nursing home care. In addition, it would result in a reduction of choice for patients. The NMa has therefore decided that the planned merger should be further investigated, and that the merger must have a license in order to go through. If the health care institutions apply for a merger license, the NMa must issue a decision within 13 weeks on whether the concentration is allowed to go through or not.



Merger review
When reviewing mergers and acquisitions, the NMa assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market. It is important to have competition, because it encourages organizations to put more effort in offering more and better products and services. Competition offers consumers considerable advantages: competition generally leads to more choice, higher quality, and lower prices.


Since 2004, the NMa has taken more than 100 decisions with regard to concentration assessments in the Dutch health care industry. Since 2004, there have been ten concentration cases where the merging parties themselves, in part because of the NMa's objections, decided to cancel their merger plans. In addition, there have been eight cases where the concentration did go through eventually, after modification of the original plans because parties had submitted so-called remedies (proposals) to the NMa to take away antitrust concerns it had identified.