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Newsletter Article


Court Ends Dutch Hospital Budget Restriction

A September court ruling put an end to budget restrictions that were used to limit hospital expenditures in the Netherlands. The ruling applies to 35 percent of hospital care, which was previously subject to government guidelines and potential government intervention, but which will now be subject to the sole discretion of hospitals and third-party payers. This share is set to grow rapidly to 70 percent in the near future. While the price component of hospital care can still be regulated to some extent, quantity and therefore total costs are now out of the control of the government. As a consequence, hospital care cost control is transferred to the market.


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