Mainz. Given a triple digit million loss last year The Mainz University Medical Center is applying for an extension of its credit line. The application envisages an increase of 150 million to 900 million euros, as stated in a letter from the Ministry of Science and Health to the state parliament. University medicine has one of the largest shares in the state of Rhineland-Palatinate.
According to the letter, the previous credit line was almost exhausted, standing at around 738 million euros as of August 15. The credit line is intended to provide liquidity to the University Medical Center, which has been recording huge losses for years. The state parliament’s budget and finance committee has yet to approve an expansion. The deficit is expected to be reduced to zero within five years.
Financial deficits due to health care
The reason for the deficit of around 113.6 million euros last year (2022: 65.1 million) is, among other things, the lack of income from hospital operations – a problem that university medicine shares with many hospitals. According to the ministry’s letter, the higher interest rates for new loans of the only university hospital in Rhineland-Palatinate also have a negative impact. In addition, pre-financing would be necessary for investments in the course of the planned comprehensive renovation and new construction.
By the end of the year, the university medical council is expected to develop a concept with which the deficit can be reduced to zero within five years. The committee was recently asked to do this by the supervisory board chaired by Minister of Health and Science Clemens Hoch (SPD). (dpa/lrs)