Swiss Hospital Chain Faces Financial Pressure from Basic Insurance Patients and Rising Labor Costs

Hirslanden, a private hospital group in Switzerland, has been experiencing a decline in profitability due to the increase in patients with basic insurance. With more than half of the patients treated in their private clinics having basic insurance, which is less profitable for hospitals, Hirslanden is under pressure to retain the remaining supplementary insured people.

The hospital operator has been affected by rising costs, particularly in wages for nursing staff. In response, they are focusing on automation in administration and laying off employees to reduce costs. However, this has led to uncertainty regarding the intentions of the two wealthy families that are behind the South African parent company of Hirslanden.

Despite these challenges, Hirslanden is working to increase bed occupancy rates to improve profitability. Currently at 66 percent, the goal is to reach 80 percent across the group. The hospital group also has a long-term strategic partnership with Mediclinic, but their specific expectations remain unclear.

To remain profitable and attract insured patients, Hirslanden is making changes to its infrastructure and services. They are refocusing their operations and increasing efficiency to reduce costs and improve bed occupancy rates. Patients with additional insurance receive various advantages during hospital stays such as larger rooms, more food choices, access to senior doctors and more expensive medication. However, with rising costs of insurance in Switzerland fewer people can afford supplementary coverage which has led to a decline in the number of patients with additional insurance being treated at Hirslanden’s private clinics.

In conclusion, Hirslanden faces several challenges that have affected its profitability including an increase in patients with basic insurance and rising costs particularly in wages for nursing staff. The hospital operator is under pressure to retain the remaining supplementary insured people and increase bed occupancy rates while also reducing costs through automation and layoffs. Despite these challenges, Hirslanden remains committed to providing quality healthcare services while staying competitive in the Swiss healthcare market.