The 100 big not-for-profits hospitals, which deliver almost all hospital healthcare in the Netherlands, will be forced to sell off their property from January 1, 2009, according to Nanouk Leeflang, senior economist at ING.
From then on, the value of the real estate they are sitting on will be factored into the treatment payments received by the hospitals
The move will penalise institutions sitting on valuable development land. Leeflang says that the foundations can already sign sale and leaseback agreements, but that the new law is likely to lead to a lot of activity.
He adds: "Foundation hospitals on big sites in Amsterdam will have to sell or develop them." He said there is a danger that the change may be pushed back a year, partly due to resistance from the Socialist Party, which is part of the ruling coalition and is opposed to competition, but continues: "2009 or 2010 - it is definitely going to happen."
The socialist party may also limit the move to a free market in treatment between insurers and hospitals. At the moment, a completely free market only exists for 20% of treatments, with a maximum price applied to some other services and others still on a fixed price. Leeflang says that the free market should move to 35% in 2009, but may plateau there, thanks to the Socialists.
The current plan envisages the foundation hospitals being free to move to reward shareholders with profits in 2012.
