NMa to Investigate Further the Merger of Healthcare Institutions in Groningen

The healthcare institutions involved both provide services within the framework of the Exceptional Medical Expenses Act (so-called “AWBZ healthcare”), which include both residential care and community care. NMa's concerns focus on community care within the region covered by the Groningen Healthcare Administration Office and relates to the market for personal care and nursing,as well as household care. Residential care, in contrast to community care, involves residence at the healthcare institution. In this area, the healthcare institutions involved offer nursing care and convalescent home care.

The merger could result in an appreciable restriction of competition within the area covered by the Groningen Healthcare Administration Office in the above-mentioned community care markets, which fall within the scope of the Exceptional Medical Expenses Act. The merger of the two healthcare institutions could result in high joint market shares. In addition, there appears to be insufficient competitive pressure from other healthcare institutions. As a result, a dominant position may arise or be strengthened. 

If TZG/Sensire and Oosterlengte apply for a licence, NMa will decide within 13 weeks whether the concentration is or is not permitted. In the licensing phase, for instance, NMa will conduct a more in-depth investigation into the nature and extent of the barriers to entry which other healthcare institutions may experience if they wish to become active in the Groningen region. In addition, NMa will conduct a further investigation into the procurement power which the Groningen Healthcare Administration Office possibly has as the sole purchaser of healthcare covered by the Exceptional Medical Expenses Act.

In the past year, NMa has assessed various mergers in the healthcare sector. Last week NMa announced that a dominant position may arise or be strengthened on the markets for convalescent home care, nursing home care and home care in the region of Midden-Limburg by the merger of three healthcare institutions in Limburg, namely Stichting Proteion Zorgcentra (Proteion), Stichting Thuiszorg Midden Limburg (TML) and Stichting Land van Gelre en Gulick (LvGG). A licence was also required for the realisation of this merger.