Minister Fleur Agema: “It is a disgrace that there are people who misuse funds intended for healthcare, and patients suffer as a result. These profiteers deliberately damage the broad trust in the healthcare and youth care sector. While most providers do their work with good intentions, there are also providers who misuse public funds to enrich themselves financially. I want to tackle these abuses, tricks in (financial) operations, and the ridiculously high profit distributions, so that this excessive self-enrichment stops.”
External Supervision, Enforcement, and Additional Grounds for Refusal and Revocation of Licenses
To stop the misuse of funds, supervision by the Dutch Healthcare Authority (NZa) will be improved. The bill ensures that the NZa can monitor the operations of healthcare organizations. They can investigate signals further by requesting financial documents and impose sanctions if necessary. The requirements and possibilities for supervision and enforcement will also apply to youth care providers. The NZa will also monitor large transactions in healthcare where there may be a conflict of interest. Consider an ICT contract with a relative or the sale of a property to a spouse. The NZa can check whether a market-conform price is being paid.
With additional grounds for refusal and revocation of licenses, non-integral directors will be better excluded from healthcare. A license can be refused or revoked if good care is not provided or if individuals pose a serious risk to the proper governance of the healthcare provider. This may involve directors who were previously involved in criminal activities or a director who allows the healthcare provider to go bankrupt when one or more supervisors start an investigation into the provider.
Standards for Profit Distributions
The ban on profit distribution in healthcare remains in place and is tightened. New conditions for profit distributions by healthcare and youth care providers who are allowed to distribute profits will be introduced at the legislative level. These conditions will also apply to so-called subcontractors if they wish to distribute profits. If it is established that providers do not provide good quality of care or violate rules for billing, it is prohibited to distribute profits. Additionally, a provider may not take money out of an organization if the finances are not in order.
No Irresponsible Risks
Additionally, the law requires care providers not to take irresponsible risks with loans or investments. This prevents investors, such as private equity firms, from extracting too much money from healthcare or youth care businesses.
See also: Bill on Integrity in the Operations of Healthcare and Youth Care Providers