Swiss Hospitals Facing Financial Challenges
Many Swiss hospitals are struggling to achieve sustainable operational margins, according to a recent report by H+ Die Spitäler der Schweiz. The association has called for immediate action in healthcare policy to prevent jeopardizing medical care in the country.
Decreasing Margins
The EBITDA margins, which represent earnings before taxes, interest, and depreciation, have seen a significant decline in recent years among Swiss hospitals. An analysis of financial data from around 90% of Swiss hospitals revealed that a margin of 10% is necessary for sustainable hospital operations. However, in 2023, acute care hospitals saw their margins drop to just 2.5%.
Impact on Reserves
As a result of these declining margins, hospitals are increasingly using their capital reserves to cover ongoing costs. On average, the reserves of acute care hospitals have decreased by 5.6% over the past two years, approaching the minimum target of 30%. This trend poses a threat to long-term investments essential for hospital operations and modernization.
Challenges in the Payment System
The root of the problem lies in the reimbursement and tariff system. Despite rising hospital revenues, margins have not improved. Particularly in outpatient care, current tariffs do not cover the actual costs, leading to a shortfall of 30%, according to H+. External factors such as inflation and a shortage of skilled healthcare professionals further exacerbate the situation.
Call for Action
To ensure the long-term quality of care, H+ is urging policymakers and health insurers to implement an immediate 5% tariff increase. Over the next four years, outpatient tariffs should be gradually raised by 15% to align with actual costs.
Subheadings:
The Financial Struggles of Swiss Hospitals
Impact on Hospital Reserves
Addressing Challenges in the Payment System
As Swiss hospitals grapple with financial challenges, it is crucial for stakeholders to work together to safeguard the sustainability of healthcare services in the country.