Developments in spring 2024

Developments summer 2024

Recent developments following the summer recess

On 10 September, the House of Representatives once again voted in favour of three motions concerning private equity and profit distribution in healthcare. These motions propose:

  • a ban on private equity in healthcare;
  • further rules on profit sharing by extramural healthcare providers;
  • a ban on profit sharing by subcontractors.

In a fierce parliamentary debate on 5 September, the Minister strongly opposed the motion to ban private equity, stressing the importance of 'virtuous investors' to fund essential innovation, automation and digitalisation costs, which cannot be covered solely by public funds. To combat 'locusts and predators' in the sector, the Wibz proposes profit-sharing restrictions and a stricter healthcare-specific merger test.

The Minister was not deterred by the motion calling for further rules on profit distribution by out-of-home care providers, as she already supports additional profit-sharing conditions under the Wibz framework. The motion also calls for an early submission of the Wibz, to which the Minister has committed, aiming for a January 2025 submission.

The Minister was critical of the motion on profit-sharing by subcontractors, noting that subcontractors, such as cleaning companies working with healthcare institutions, should be able to make a profit. On the other hand, she sided with the motion’s petitioner, Bushoff (PvdA-GroenLinks), promising him official support 'in order to bring the intention of your amendment, which I fully support, into line with the Wibz'.

Loyens & Loeff perspective

Conclusion

We are closely monitoring developments in healthcare private equity and profit-sharing. If you have any questions regarding the legislation discussed in this blog, profit-sharing and private equity in healthcare or the Wibz, please feel free to reach out to your usual contact in our Life Sciences & Healthcare team or to me directly.