90% hospitals struggle financially

Some 90% of hospitals find it difficult to remain financially healthy, according to a report published by Trouw on Tuesday.

Small hospitals in the Randstad area (Amsterdam, Rotterdam, The Hague and Utrecht) in particular face an uncertain future, says research agency Strategies in Regulated Markets which examined the annual reports of 77 hospitals.
Small healthcare institutions in the Randstad may not survive if their profit margins do not pick up within the next few years, the researchers told Trouw. ‘They could be taken over by larger hospital groups,’ researcher Jan-Peter Heida told the newspaper.
The survey showed that only 10 of the hospitals studied are making enough profit to survive, while 16 are in the red. The rest make a profit, but less than the 2.5% which Heida believes is necessary to ensure financial security.
Heida also said that the free market will eventually solve some of the problems as hospitals will become more competitive by specialising in certain treatments.

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