On March 14, 2019, the German Bundestag passed the Schedule Service and Supply Act ("Terminservice- und Versorgungsgesetz, TSVG"), generally aiming to improve service levels within the statutory health insurance system. Together with those regulations, the TSVG contains a set of rules that are of high interest for private equity investors active in the German healthcare sector.
The now approved rules and regulations affect the investment into medical supply centers ("Medizinische Versorgungszentren, MVZ"), via hospitals and non-medical dialysis suppliers which are the only inroads into the statutory health supply system available for—and, in fact, largely used by—sponsors (the others being nonprofit organizations and municipalities which by definition are no viable options for investors).
The new law states that the incorporation of an MVZ via a non-medical dialysis supplier shall only be applicable to an MVZ providing subject-related medical care (i.e., medical care in connection with dialysis services or overall care for renal patients), thus making these investment vehicles unavailable for the establishment of MVZs in other disciplines, such as ophthalmology or radiology.
Matthias Uibeleisen published an excellent article and update on this topic. You can download the PDF here as your weekend read.
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