Search
Contact
21.09.2017 | KPMG Law Insights

Law of the health care industry – Hospitals in the area of conflict of different legal regulations

Hospitals in the area of conflict between different legal requirements

Hospitals are supposed to provide the best medical care for citizens, says social law. But without assuming a dominant position in the market, antitrust law demands. This leaves decision-makers on the hospital side sitting between two stools. And can do a lot wrong.

In early summer 2016, the German Federal Cartel Office contacted around 500 hospitals nationwide with an extensive questionnaire as part of a sector inquiry. The goal is to gain insight into the competitive framework. In addition to mergers, this specifically involves cooperations, the relevance of which under antitrust law has not yet been recognized by many players. The Federal Cartel Office intends to publish the results of the sector inquiry.

Social law ensures needs-based health care

In Germany, the provision of high-quality medical services (hospitals, contract physicians, providers of medical aids and remedies, etc.) to meet the needs of the population is governed by social legislation. Cooperation between hospitals is intended to benefit patients and is being promoted by politicians and authorities in many areas because it can improve the quality of medical care.

Antitrust law fights abuse of market power

What social law demands of hospital operators, antitrust law takes a critical view of, because a dominant market position is quickly achieved, especially in rural areas. The goal of antitrust law is to maintain functioning, unimpeded competition that is as diverse as possible. But it equally examines reciprocal specializations in service delivery or the development of new practices. Logistics, such as the purchase of goods and services, may also not be shared by two houses.

Sector inquiry assesses competitive framework

The competitive assessment also involves determining how hospitals seek to differentiate themselves from their competitors through their service offerings, quality management or specializations. The role of the various actors, such as medical staff, referring physicians, and emergency medical services, is also highlighted. Remuneration structures and the financial situation of hospitals are analyzed, as are the considerations that guide patients in their choice of hospital.

Conclusion

The Bundeskartellamt intends to use the sector inquiry to gain a better understanding of the hospital market and, if necessary, to adjust its decision-making practice in merger control proceedings and in the assessment of cooperations. The players concerned should therefore closely follow the announced report of the sector inquiry as well as the subsequent decision-making practice of the Federal Cartel Office.

However, even in the case of cooperation or merger projects, the antitrust component should be included in the considerations at an early stage in the run-up to the report. Those who do everything right according to the objectives of the social legislator can act unlawfully under antitrust law and risk fines and damage to their image. Legal advice is appropriate here.

Explore #more

26.02.2025 | KPMG Law Insights

First Omnibus Package to relax the obligations of the CSDDD, CSRD and EU taxonomy

The EU Commission has today published the draft of the first announced Omnibus Package. With the first directive as part of the omnibus initiative,…

24.02.2025 |

Digitization of administration – the digital driver’s license is a first step

The introduction of digital driver’s licenses and vehicle documents recently approved by the Federal Cabinet marks a significant milestone in the digitalization of modern administration.…

21.02.2025 | In the media

Guest article in Betriebs Berater: Overview of regulation for securities institutions

Since the Securities Institutions Act (WpIG) came into force on June 26, 2021, securities institutions have had their own supervisory regime. In addition to the…

21.02.2025 | KPMG Law Insights

Money laundering prevention: BaFin calls on financial sector to act

The German Federal Financial Supervisory Authority (BaFin) is calling on the financial sector to pay greater attention to money laundering prevention. In its report “Risks…

18.02.2025 | KPMG Law Insights

AI compliance: important legal aspects at a glance

Human intelligence draws on experience, emotion and intuition. Artificial intelligence (AI), on the other hand, processes vast amounts of data in fractions of a second.…

17.02.2025 | In the media

WirtschaftsWoche honors KPMG Law and Konstantin von Busekist

KPMG Law and Konstantin von Busekist were recognized as TOP Law Firm 2025 and Konstantin von Busekist as TOP Lawyer 2025 in the current WirtschaftsWoche…

17.02.2025 | In the media

Guest article in InfrastrukturRecht: Inability to charge the water concession levy

On 09.10.2024 (9 B 5.24), the BVerwG dismissed the appeal of the City of Kassel against the non-admission of the appeal in the judgment of…

13.02.2025 | Deal Notifications

KPMG Law and KPMG advise Windmöller & Hölscher on the sale of the textile machinery division to Starlinger

KPMG Law and KPMG are advising Windmöller & Hölscher KG (Windmöller & Hölscher) on the sale of its textile machinery division to Starlinger & Co…

13.02.2025 | Deal Notifications

KPMG Law advised LDA Legal Data Analytics GmbH on its cooperation with the publishing house C.H.Beck on the development of the chat book “Frag den Grüneberg”

Digitalization is changing the way legal knowledge is accessed and used. LDA Legal Data Analytics GmbH (LDA) develops AI solutions for the legal sector to…

11.02.2025 | KPMG Law Insights

Receipt of the notice of termination at the usual postal delivery times

In the opinion of the Federal Labor Court (BAG, judgment of June 20, 2024 – 2 AZR 213/23), a letter of termination sent by…

Contact

Dr. Gerrit Rixen

Partner
Head of Antitrust and Investment Control

Barbarossaplatz 1a
50674 Köln

Tel.: +49 221 2716891052
grixen@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll