^iEALTHY PARTNERSHIP
LBS
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What's NkwS Issue 2 February 1996
working relations
3
The Delta Psychiatrie Hospital in Rotterdam confronts something of a dilemma.
The political, regulatory, and financial environment in Dutch health care is in a
state of almost unprecedented flux. Yet Delta's mission - to provide high-quality
care - remains unchanged.
high-tech business that can act
the instant it arrivés at a
decision. Our activities are
closely regulated by the
government. It can take years
for decisions to be approved.
So it is very important that we
have a partner that is well-
versed in the regulatory
aspects of this work - and that
can help us financially
navigate these regulatory seas.'
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OVERLAST
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Vnder construction - Delta director Eddy
Schuyer's new, Rabobank-financed facility
This dilemma is hardly unique to Holland,
in fact. Throughout the developed world,
populations are aging and the pressures of
modern life are on the rise. l.ittle surprise
that demand for psychiatrie services is
high. But at the same time, economie
realities are narrowing the scope for
government to maneouvre; policymakers
are seeking ways to 'rationalize' public
commitments.
UNIQUE PROFILE
Institutions like Delta are caught in
between. When it became clear that it was
to be privatized last year, one of Delta's
first concerns was to lay strong
foundations for its financial security. It
chose a bank that understood the
challenges it faced and was committed to
meeting its long-term needs. 'This was
more than a question of money and
interest rates,' explains Delta's director
Eddy Schuyer. 'I came away with a
very definite impression that Rabobank
was devoted to understanding the
unique profile of the health care business
NAVIGATING REGULATIONS
Schuyer has good reason to understand
^he significance of this 'unique profile.' In
Brddition to his directorship of Delta, he
has the distinction of serving as leader of
the reformist D66 political party in the
upper house of the Dutch parliament in
The Hague. 'Delta is not IBM or some
S SPECIAL NEEDS
There is a great deal at stake.
With nearly 800 beds, Delta
ranks among the top three psychiatrie
hospitals in Holland. It serves a uniquely
diverse region of 650,000 people which
includes not only residents from the urban
centre of Rotterdam and the so-called
Randstad but also a significant Calvinist
farming community that is clustered
among the Zuid Holland islands of the
Rhine. 'These are really quite different
populations and each has its own special
needs,' observes Schuyer. Inner city
Rotterdam, for example generates a great
many drug-related maladies. The
demographic trend overall has increased
demands for care targeted at the problems
of aging. Almost half the patients are at
Delta for a long-term stay. At the same
time, the hospital serves some 1,500
outpatients annually as well.
DELTA PSYCHIATRISCH
ZIEKENHUIS - GEZOND
PARTNERSHIP
De Nederlandse gezondheidszorg is bijna
volledig geprivatiseerd Dankzij de
jarenlange ervaring van de Rabobank in de
gezondheidszorgsector, de kennis van de
overheidsregels op dit gebied en de goede
contacten die zijn opgebouwd, koos het
Delta Ziekenhuis voor de Rabobank. De
Rabobank financiert onder andere het
nieuwe complex voor de opvang van tbs-
patiënten dat naast het ziekenhuis wordt
gebouwd. Elk kwartaal wordt met het
accountmanagement de financiële strategie
besproken en ook op lokaal niveau bestaan
goede contacten.
SECURE EXPANSION
A quite separate but related departure for
Delta is the expected opening this summer
of an altogether new facility now under
construction. Holland's criminal justice
system is overburdened with offenders
who have been declared criminally insane
and need long-term help. Several hundred
are waiting for placement. A large high-
security hospital - the largest in Holland -
is being built with help from a NLG 200
million Rabobank credit line on grounds
directly adjacent to the Delta facility. Eddy
Schuyer has been appointed as director of
this hospital, and hopes to synergize the
resources of both, including not only the
medicai staff but such ancillary facilities as
the laundry and kitchens as well.
LOCAL SOLUTIONS
Schuyer meets with Rabobank account
managers quarterly to discuss issues of
financial business strategy. His staff and
controller have direct contacts at local
Rabobank level for problems that can
arise day by day. To address some of those
problems, for example, a NLG 10 million
credit facility has been designed to meet
cash flow needs when, as often happens,
medicai insurance companies are late with
their monthly reimbursements.
PROACTIVE SERVICE
Schuyer says he has come to appreciate
the unusual degree of personal attention -
'almost a family relationship' - with
Rabobank. For example, the bank will
alert him to the most favourable moments
in the interest rate cycle at which to
borrow funds. When it was first bidding
for Delta's business, Rabobank designed a
special package for hospital employees
that included savings, insurance and
mortgages on favourable terms. The bank
even sponsored the purchase of a pair of
special busses designed for patients with
physical disabilities.
UNIQUE RELATIONSHIP
The special relationship with Delta reflects
Rabobank's strategie commitment to the
health care and pharmaceutical markets.
'Of course, every business has its own
risks,' says Leendert Mastenbroek, one of
the Delta account managers. 'But this is an
area where we see a good prospect for
long-term growth.' In the end, of course, a
banking relationship boils down to trust.
'It's interesting,' remarks Schuyer: 'if you
meet other executives who use Rabobank,
you find they spend less time talking
about interest rates and more about the
special relationship they've developed with
the bank and about how much attention is
devoted to their individual needs. This, to
me, seems quite unique.'
