Dutch private equity group Gilde Healthcare Partners has already raised over half its new €50m healthcare services fund announced in December 2009. In its first foray into healthcare services, manager Jasper Van Gorp says that Gilde plans to invest in the Netherlands and is also looking at the UK, Germany and Belgium. Expect announcements in the next few months.

Van Gorp sees three main areas of interest – elderly care, specialist clinics and outsourcing. “In the Netherlands, elderly care is almost entirely public sector but it is fairly basic. If you have money to spend it is, typically, not what you would chose. Medical care may be good, but comfort levels are basic. If you want something more, then you have to go to the private sector. At the moment, small private homes attract the top 5% of the market but we think that you can produce something for the mid-market, people who want more comfort and might have property to sell.”

He also says that some specialised clinics in the Netherlands look attractive and have expandable business models.

Whilst he says that the main healthcare reform, the privatisation of statutory healthcare insurance has worked, there is still plenty to do in the Netherlands. “The insurers continue to find it hard to differentiate themselves and to make the move from statutory fund to being a private insurer. They are supposed to encourage innovation, but, in practice, they continue to buy mainly on price.” He says there has been little demand from consumers for slightly cheaper insurance packages where they have to use preferred suppliers. “For a saving of a hundred, or a few hundred euros, consumers are not prepared to sacrifice choice.”

For outsourcing to take off, the government would have to change rules which zero rate healthcare generally but force hospitals to pay VAT on any services they outsource. This has had a big impact on the recruitment and diagnostics markets.