Higher education in the Netherlands is divided into three sectors: traditional universities; schools for higher occupational education, known as "hoger beroepsonderwijs," or HBOs; and the Open University, which offers both university and HBO degrees for students unable or unprepared to attend traditional institutions. The HBO system, having evolved from guild courses in the 19th century, was formally established in 1963. By 1983, there were 348 HBOs, but it had become evident that many of the institutions were too small to have any managerial strength and too restricted in course offerings. Subsequent policy changes mandated that HBOs achieve minimum enrollments of 600 students through institutional mergers, that they operate with increased autonomy, and that they increase efficiency. To determine issues associated with the mergers, related literature was reviewed and three HBOs representing different approaches to the merger process were visited and interviews were conducted with rectors and other high-ranking administrators. Based on the literature and interviews, the three institutions all experienced a certain psychological difficulty adjusting to the mergers, although there were definite advantages to the process, such as increased autonomy regarding the use of resources, personnel policies, and the educational process. In general, all three institutions benefited from the process, suggesting that this type of consolidation might also be beneficial for institutions in the United States. Contains 12 references. (BCY)