Update 1 June 2021
Here in the Netherlands, we seem to have skipped spring (even after my more positive notes in the last update). Hopefully, we will not skip summer - The current, weather which sunny and hot, gives hope. The good news is that after a couple of very hot and dry years that resulted in extremely low water reserves, the extreme levels of rain during the last few months has resulted in water levels that are now back to normal.
In this update we cover:
- Authority for Consumers and Markets require more information. Will Mediq acquisition of Eurocept Homecare take place?
- Radiologists develop own expertise center. Local answer to international outsourcing of radiology services?
- In our snapshot we give an overview of NOK a chain of obesity clinics
Will Mediq be allowed to acquire Eurocept Homecare?
Eurocept Homecare was one of the recent M&A deals included in the overview in the update of 6 April 2021. Recently, the Authority Consumers and Markets (ACM – the Dutch competitor watchdog) announced that it needs more time before approving the acquisition of Eurocept Homecare and Excellent Clinics by Mediq (see here for the latest news on what appears to be the aborted process to sell Mediq). Both Mediq and Eurocept Homecare have a large market share in the Dutch market in tube feeding and infusion pumps. The ACM wants to ensure that that the combined entity will not have a too high market share that will lead to higher prices, lower quality, and less innovation.
It will be interesting to see what the conclusion of the ACM will be. If it is negative who will be the alternative buyers of Eurocept Homecare?
Local answer to international outsourcing of radiology services
The increased digitalization of radiology has made (international) outsourcing and the analysis and interpretation of images possible. Starting as an opportunity to have 24/7 access to interpretation services it is increasingly driven by cost considerations.
Radiology specialists in five Dutch hospitals have now joined forces to provide a local Dutch alternative to international outsourcing services. The new group (Pluhz Teleradiology) consists of 100 radiologists. They strongly believe that they can be competitive on costs and can deliver better quality. They believe that a key driver for providing better quality is having the same culture and language as the buyers of the services.
Due to COVID there is a general trend to reduce the lengths of supply chains. Can this be seen as another example of the Dutch healthcare sector reducing the reliance on international providers of healthcare related products and services?
Snapshot of a private Dutch healthcare operator : NOK
De Nederlandse Obesitaskliniek (NOK) is a chain of ten clinics (three as joint ventures with local hospitals) focusing on helping patients with morbid obesity (BMI higher than 40). The chain was started 25 years ago. The services provided is a combination of operations, psychological assistance, and diet advice. All services involving an operation are covered by Dutch healthcare insurance. The chain employees 40 specialists. 2019 revenues totaled €39 million, and the company made net profits (after tax and share of profits to minority shareholders of three of the locations)of €2.0 million.