Hospitals and their management face challenges on many levels. Whether it’s sustainable financing of infrastructure or optimal resource planning, the question is always: how to grow profit?
On average, public hospitals generate EBITDA margins of only 6.5%. However, at least 10% are required for hospitals to be able to finance themselves in the long term. A hospital director was frank about it: “Even though it would be fantastic and the time would be right to refurbish our hospitals, in fact, we cannot afford to do that.” Despite this, just about every second acute hospital has plans to expand or reconfigure its premises. Our survey showed that construction projects to the tune of CHF 15 billion are in the works. This enormous sum shows that many cantons have been negligent in keeping their hospital infrastructure up to the latest standards over the past few years.
Management is also facing great challenges. On the income side, adversity is lurking on different fronts. Health insurances want to keep costs down by restricting the number of treatments. Time and again, rates are lowered with the help of the price watchdog, which increases the pressure on the cost structure.
At the same time, cantons have been ordered to cut costs. Moreover, a number of regulatory changes are waiting in the wings, such as the requirement to change more treatments from stationary to ambulant.
How to meet these new challenges? Read out latest edition of Clarity for more insights.
Find the complete Clarity on Healthcare for download here (in German):
Entrepreneurial leeway for hospitals - Dr. Thomas Heiniger, Executive Councilor and Director of Health Administration of the Canton of Zurich
Norway’s health system: collective responsibility for its population and health
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