The shipping company MSC’s future plans for Hirslanden

The Hirslanden private hospital group is now primarily treating patients with basic insurance, which has led to a decline in profitability. There is uncertainty regarding the intentions of the two wealthy families that are behind the South African parent company of Hirslanden.

Patients with additional insurance receive various advantages during hospital stays, such as larger rooms, more food choices, access to senior doctors, and more expensive medication. However, with the rising costs of insurance in Switzerland, fewer people can afford supplementary coverage. 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.

Hirslanden’s profitability has been affected by a significant increase in costs, particularly in wages for nursing staff. The hospital operator is under pressure to stop the loss of margins and retain the remaining supplementary insured people. In response, Hirslanden is focusing on automation in administration and laying off employees to reduce costs.

The hospital group is also working to increase bed occupancy rates to improve profitability. With bed occupancy rates currently at 66 percent, the goal is to reach 80 percent across the group. Hirslanden’s owners, Mediclinic, have a long-term strategic partnership with the hospital group but their specific expectations remain unclear.

Hirslanden is looking to refocus its operations and increase efficiency in order to remain profitable. The company is making changes to its infrastructure and services to attract and retain insured patients, while also trying to reduce costs and improve bed occupancy rates.