NMa: Merger of Ziekenhuis Leyenburg and Juliana Kinderziekenhuis/Rode Kruis Ziekenhuis Approved

Ziekenhuis Leyenburg (Leyenburg Hospital) may merge with Juliana Kinderziekenhuis/Rode Kruis Ziekenhuis (Juliana Children's Hospital/Red Cross Hospital) in The Hague. This is the outcome of an extensive and substantive assessment of this hospital merger by the Netherlands Competition Authority (NMa).

NMa concludes that if both the total market for general hospital care and the various specialisms, such as internal medicine, rheumatology and paediatrics, are considered, there is no reason to assume that a dominant position will arise as a result of the merger, as sufficient suppliers remain. NMa has investigated the effects on competition of this merger in the region of The Hague and surroundings, as research showed that the vast majority of patients come from this region.

In relation to past notifications of hospital mergers, NMa always indicated that de facto competition between hospitals was not yet possible due to legislation and regulations applicable at the time. In the recently published Position Document 'Competition in the Hospital Sector' and in relation to this merger, NMa has concluded that providers of hospital care can differentiate themselves from each other on the basis of the efficiency and production incentives contained in present legislation. As a result, competition is possible on the basis of quality, service and the range of care offered. The Competition Act therefore applies to these providers. For this reason, NMa carried out a substantive assessment of the merger of these hospitals for first time.