- Financial shortfall demanding enhanced credit authorizations from Unimedizin
With a massive financial loss of over 100 million euros last year, University Medical Center Mainz has requested an extension of their credit line. The application aims to boost their limit by 150 million euros, bringing it up to a grand total of 900 million euros. This information was disclosed in a letter sent by the Ministry of Science and Health to the state parliament.
The current credit line was close to depletion by August 15th, standing at approximately 738 million euros. This line of credit was put in place to support the University Medical Center, which has been operating at a loss for years. However, the expansion still awaits approval from the Budget and Finance Committee of the state parliament.
Last year's deficit, amounting to around 113.6 million euros (a decrease from 2022's 65.1 million euros), can be attributed to various factors, including revenue shortages from hospital operations - a problem widespread among hospitals. The letter from the ministry also mentions the higher interest rates on new loans and the necessary pre-financing for investments in the extensive renovation and construction of new facilities as additional financial burdens.
By the year's end, the University Medical Center's board is expected to devise a plan to eliminate this deficit within a five-year period. This task was recently assigned to them by the supervisory board, headed by Health and Science Minister Clemens Hoch from the SPD party.
The losses in millions from last year significantly contributed to University Medical Center Mainz's request to increase their credit line by 150 million euros, bringing the total to 900 million euros. Due to these losses, the current credit line was nearly depleted by August 15th, demonstrating the financial struggle the medical center has been facing.
