- More state funding for research and teaching in unimedicine
Rhineland-Palatinate has significantly increased its financial support for research and teaching at the overall deficit-ridden University Medical Center in Mainz over the past years. The so-called state funding contribution grew by about a quarter, from 95.04 million euros in 2020 to 119.19 million euros in 2024, according to a response from the Ministry of Science and Health in Mainz to a query from the CDU state parliamentary group.
The adequate financial endowment of the University Medical Center in the areas of research and teaching and its impact on the overall economic viability of the house, which is in competition with other university clinics, has been a topic of discussion for some time. However, the substantial deficits arise in healthcare. Treatments are financed on a case-by-case basis by payers such as health insurance companies, as explained by the ministry. However, these flat rates have not covered the costs in recent years. In 2023 alone, the University Medical Center ended the year with a loss of around 113.6 million euros.
Because healthcare is not profitable, the University Medical Center takes out operating loans, which have now accumulated to more than half a billion euros. These cannot be reduced as long as the house is making a loss. The state assumes the surety for these loans, i.e., it is liable if the University Medical Center is no longer able to repay them - it is therefore an indirect burden on the state budget. Therefore, the University Medical Center can only take out loans within the framework of a credit authorization decided by the state parliament, which is currently set at 750 million euros.
Deficit to be reduced to zero within five years
However, the University Medical Center is not to continue with its deficit indefinitely. The supervisory board, under the chairmanship of Health and Science Minister Clemens Hoch (SPD), has instructed the management to develop a concept by the end of the year that will enable the losses to be reduced to zero within five years.
In 2019, the University Medical Center commissioned the auditing firm KPMG to conduct a study on its financial equipment, also in comparison with other university clinics. However, the results of this analysis are only of limited significance, as there are very different systems of financing university clinics. "The state budget cannot be based on comparisons made in this investigation," the ministry writes. Instead, the University Medical Center is asked to present its needs, which will then be discussed. Nevertheless, discussions between the University Medical Center and the ministry, which were also influenced by the study, have contributed to a certain degree of objectivity in the matter.
The following is added to the state's financial support for the University Medical Center: The state parliament has granted an increased credit authorization of 750 million euros to aid in reducing the deficit, as stated in the response from the Ministry of Science and Health.
Recognizing the need for a sustainable financial solution, the supervisory board, led by Health and Science Minister Clemens Hoch, has instructed the University Medical Center's management to develop a strategy by the end of the year, aiming to eliminate the deficit within five years.
