More Dutch hospitals in financial trouble

An increasing number of hospitals are experiencing financial problems, BDO Accountants & Adviseurs wrote in the company’s annual “benchmark.” Eight hospitals reported red figures last year, according to BDO, while there were only two a year earlier. And almost half of the hospitals achieved a result of less than 1 percent turnover. On average, the margins are “wafer-thin.” The financial situation makes it very difficult to make investments for the future.

BDO gives the general hospitals’ financial performance a score of 5.5 for 2023, compared to 7.1 for 2022. It took other things into account for the assessment, such as the age of the hospitals’ real estate. The university hospitals are doing less badly, receiving a 7.0 from BDO, down from the previous 7.6. The figures are averages. According to BDO, if a hospital fails for its finances, that says nothing about the continuity and quality of care.

In the Integrated Healthcare Agreement of 2022, it was agreed to strive for more effectiveness of care and also prevention, but that transition will take 10 to 15 years, BDO believes. In the meantime, there are structural problems such as rising costs, staff shortages, and, therefore, also investment backlogs. BDO advises, among other things, to invest money in digitalization and automation “to provide appropriate care and reduce staff shortages.” According to the accountants and advisors, emphasis should also be placed on retraining staff.

The Dutch Association of Hospitals (NVZ) wants “more financial clout from politicians in The Hague to keep hospital care accessible, affordable, and of high quality,” the NVZ said. “It is urgent that we reverse this negative trend in the short term. Otherwise, healthcare will eventually come to a standstill,” said chairman Ad Melkert.

He also said that “money for hospital care is left on the shelf at health insurers.” That needs to change, he said.