The Hirslanden private hospital group has recently seen a decline in profitability due to an increase in the number of patients with basic insurance. This shift has been driven by rising costs of supplementary insurance and the fact that fewer people can afford it. As a result, more than half of the patients treated in Hirslanden’s private clinics now have basic insurance, which is less profitable for hospitals.
To address this issue, Hirslanden is implementing various cost-cutting measures such as automation in administration and laying off employees. The hospital operator is also working to increase bed occupancy rates to improve profitability. With current bed occupancy rates at 66 percent, the goal is to reach 80 percent across the group.
Despite these efforts, there remains uncertainty regarding the intentions of the two wealthy families behind the South African parent company of Hirslanden. Their specific expectations for the hospital group are unclear, adding to the pressure on Hirslanden to remain profitable.
In response to these challenges, Hirslanden is refocusing its operations and trying to increase efficiency in order to attract and retain insured patients while reducing costs and improving bed occupancy rates. The company is making changes to its infrastructure and services to ensure that it remains competitive in a rapidly changing healthcare landscape.
