Hirslanden’s Hurdles: Navigating Financial Challenges in the Swiss Healthcare Industry

In recent years, the Hirslanden private hospital group has been facing challenges due to its treatment of mainly those with basic insurance. This has led to a decline in profitability for the hospital operator, which is under pressure to increase margins and retain supplementary insured patients.

One of the reasons for this decline is that fewer people in Switzerland can afford additional insurance that covers extra costs during hospital stays. This trend has resulted in more patients with basic insurance being treated in private clinics, putting pressure on Hirslanden’s profitability.

In response to these challenges, 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 and focus on automation. Despite these challenges, Hirslanden remains one of the most profitable hospital operators in Switzerland but faces increasing competition and rising costs in the healthcare industry.