The private hospital group Hirslanden has been facing challenges as it primarily treats patients with basic insurance, resulting in a decline in profitability. There is uncertainty about the intentions of the two wealthy families behind Hirslanden’s parent company in South Africa.
Patients with additional insurance receive many benefits during hospital stays, such as larger rooms, more food choices, and access to senior doctors. However, in Switzerland, fewer people can afford insurance that covers these costs, leading to an increase in patients with basic insurance being treated in private clinics.
With rising costs and a high proportion of patients with basic insurance, Hirslanden has seen a decline in profitability over the years. The hospital operator is under pressure to increase margins and retain supplementary insured patients by investing in infrastructure and offering specialized services.
Hirslanden is implementing cost-saving measures, particularly in administration, and aims to increase bed occupancy to improve performance. The company’s two owners, Remgro and MSC, have long-term strategic plans for Hirslanden but there is no clarity on specific expectations from the business.
As Hirslanden repositions itself for the future, it must address cost pressures, increase efficiencies and focus on automation. Despite challenges, Hirslanden remains one of the most profitable hospital operators in Switzerland but it faces increasing competition and rising costs in the healthcare industry.