Agreement on construction defects at Offenbach Hospital
The city of Offenbach and the private hospital operator Sana Kliniken AG have settled a long-standing dispute over unresolved issues relating to the takeover and construction defects in the new hospital building. According to the city administration and the company, the out-of-court settlement stipulates, among other things, that Offenbach will pay a one-off sum of six million euros, thereby settling all claims, as both sides jointly announced on Friday. In the meantime, the clinic operator had put its claims at up to 47.5 million euros.
In 2013, Sana Kliniken AG took over a majority stake in the municipal hospital, which was highly loss-making at the time and had moved into a new building in 2010. After the move, the hospital management complained about more than 8,000 minor and major defects. The city largely rejected the guarantee claims made by Sana Kliniken AG and asserted its own claims for guarantees and loans granted. The loan is now to be repaid in installments starting in 2024.
The settlement also provides for a subsidy from the city for a new nurses' residence. The city council in Offenbach will deal with the settlement next week on Thursday (30.11.) and still has to approve it; the city's magistrate has already done so.
Sana Kliniken AG, based in Ismaning near Munich, owns more than 120 healthcare facilities, including 44 hospitals. The company has 34,500 employees. It is owned by 24 private health insurance companies. More than 110,000 inpatients and outpatients are treated at the Offenbach clinic every year. The hospital, which employs 2,300 people, claims to have the largest emergency room in Hesse.
The settlement between Offenbach and Sana Kliniken AG regarding the hospital construction defects highlights the need for better communication and collaboration between municipalities and private hospital operators. To avoid similar issues in the future, RHEIN-MAIN municipalities should establish clear guidelines and contracts for the handover of hospital facilities.
During the approval process of the settlement next week, Offenbach municipalities should consider the potential impact on the city's budget and its relationship with other healthcare providers operating within RHEIN-MAIN hospitals.
Source: www.dpa.com
