Rising Healthcare Costs and Shifting Focus: Hirslanden Private Hospital Group’s Quest to Boost Profitability

In Switzerland, fewer people can afford insurance that covers additional benefits, such as larger rooms, more food choices, and access to senior doctors. As a result, private clinics are seeing an increasing trend of patients with basic insurance being treated. This has led to challenges for the Hirslanden private hospital group, which mainly treats those with basic insurance and has been facing a decline in profitability.

The hospital operator is under pressure to increase margins and retain supplementary insured patients by investing in infrastructure and offering specialized services. However, rising costs and a high proportion of patients with basic insurance have made it difficult for Hirslanden to maintain its profitability over the years.

To address 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, increase efficiencies, and focus on automation. Despite these challenges, Hirslanden remains one of the most profitable hospital operators in Switzerland but it faces increasing competition and rising costs in the healthcare industry.