Healthcare Swiss hospitals fail to achieve margins for sustainable operations

The majority of Swiss hospitals do not achieve the margins required for sustainable operations. The association H+ Swiss Hospitals is calling for an immediate rethink in healthcare policy in order not to jeopardize medical care.

EBITDA margins - earnings before interest, taxes, depreciation and amortization - have fallen massively in recent years, H+ announced on Monday. This was the result of a survey of the key financial figures of around 90 percent of Swiss hospitals. A margin of ten percent is necessary for sustainable hospital operations. However, this figure fell to 2.5 percent for acute hospitals in 2023, it added.

This will have an impact on the hospitals' equity reserves, which will increasingly have to be used to cover running costs. The reserves of acute hospitals have fallen by an average of 5.6 percent in the last two years and are thus approaching the minimum target value of 30 percent. This jeopardizes long-term investments that are essential for the operation and modernization of hospitals.

The problem lies in the remuneration and tariff system, the report continued. Although hospital revenues are increasing, margins are not improving. In the outpatient sector in particular, the current tariffs do not cover the real costs, the report continued. According to H+, there is a shortfall of 30 percent. External factors such as inflation and the shortage of specialists are further exacerbating the situation.

In order to ensure the quality of care in the long term, H+ is calling on politicians and health insurers to immediately increase tariffs by five percent. Over the next four years, outpatient tariffs would also have to be gradually increased by 15 percent in order to cover real costs.

SDA