NMa to conduct in-depth investigation into health merger in the province of Overijssel

The Netherlands Competition Authority (NMa) has concluded after an initial investigation that the merger of four mental health organisations in the provinces of Overijssel and Gelderland may possibly restrict competition in the markets for in-patient and out-patient mental healthcare. The proposed merger involves Stichting Adhesie, Stichting Mediant, Stichting RIAGGz over de IJssel and Stichting Zwolse Poort. The NMa has ruled that parties will have to apply for a merger license. Upon receiving the application, the NMa will perform an in-depth investigation into the competitive effects of the merger.

The organisations concerned provide mental healthcare services within the province of Overijssel and part of the province of Gelderland. As a result of the merger, patients would lose the most plausible alternative provider of services in the field of mental healthcare. Partly owing to the limited number of active competitors in these regions, a dominant position may be created or strengthened here. Consequently, the NMa's concerns focus on the limitation of choice for patients in these bordering regions.

The follow-up investigation performed by the NMa will assess the degree of competitive pressure exerted by mental health organisations in adjacent areas and examine whether sufficient options for choice remain for patients in the four regions concerned. Patients' willingness to travel will also be taken into account for future years.

The NMa consulted the Dutch Health Authority during its investigation. The latter also does not rule out that the proposed merger may adversely affect the accessibility and affordability of mental healthcare services. If the health organisations concerned decide on submitting a license application, the NMa shall give notice of whether or not it will clear the merger within a 13- week period.

In case of mergers and acquisitions exceeding specified turnover thresholds, the NMa assesses the possible creation or strengthening of a dominant position. Such a dominant position may have adverse effects on the price, quality and diversity of supplies. If so, the NMa may either impose conditions on, or oppose, a merger.