Government proposes maintaining DigiFinland Oy’s in house entity status in healthcare and social welfare

The Government proposes that DigiFinland Oy could continue operating in healthcare and social welfare as a joint in-house entity for its current owners.

The proposal was circulated for views in the summer. Following the consultation round, the proposed section and the rationale for the proposal were specified, particularly with regard to impacts on the market and competition, the rules on state aid, and DigiFinland’s duties.

The proposed basic solution remains unchanged. Under the proposal, the requirement to be included in the Act on Public Procurement and Concession Contracts for owners of in-house entities to hold a minimum ownership stake of 10 per cent would not apply to DigiFinland when the company acts as a provider and developer of national digital services or solution services for the health and social services sector, or as the operator responsible for maintaining development activities. The proposal would not expand DigiFinland’s current duties.

The act is due to enter into force as soon as possible. 

DigiFinland is a special assignment company owned by the State, the wellbeing services counties, the City of Helsinki and HUS Group. Its status as an in-house entity means that the company’s owners can procure services from the company without competitive tendering under the Public Procurement Act.

It is now proposed that the Act require the owners of an in-house entity to hold at least 10 per cent of the shares in the entity. Not all DigiFinland’s current owners have such a large ownership stake. The exemption concerning DigiFinland would allow the company to continue operating in healthcare and social welfare as a joint in-house entity for its current owners. 

Through DigiFinland, the owners can jointly develop new nationally interoperable digital services and maintain and further develop the existing services. DigiFinland’s services include the Omaolo service and the Medical Helpline 116117.