Lebanon

Hospitals in Intensive Care: Merging, Selling, and Closing

Hospitals in Intensive Care: Merging, Selling, and Closing

Tomorrow, the "Hotel Dieu de France" hospital will celebrate receiving the management of the "Monsignor Al-Qurtabai" hospital in Adma, after taking over the management of the "San Charles" hospital earlier. This comes as part of the plan to launch a new network of hospitals affiliated with "Saint Joseph University" and "Hotel Dieu." Practically, this step outlines the next phase at the heart of the healthcare sector, which is moving toward new options to deal with the financial crisis that has persisted for three years. This is now reflected in the initiation of a merging movement, where major, financially and logistically capable university hospitals are integrating smaller or medium hospitals that are financially struggling. This was evident in the first merger between "Hotel Dieu," "San Charles," and "Al-Qurtabai."

It is expected that this "celebration" will not be the last, as it will open the door for further merging celebrations in the healthcare sector, especially given the financial difficulties some institutions are facing, which hinder their ability to continue independently. According to sources from the Ministry of Health, there are new hospitals considering this option before announcing their step.

**Numerous Complaints**

Nonetheless, merging is neither the first nor the last option, as some hospitals have resorted to selling. The financial crisis has recently led to the transfer of ownership of two hospitals, "San Louis" and "San George - Ajaltoun," to new investors, according to Dr. Joseph Al-Halo, the Director of Medical Care at the Ministry of Health. It also seems that this trend could continue, lengthening the list of hospitals undergoing ownership transfers, as several have announced their inability to continue under the current circumstances, which are predictions that may "come true," as Al-Halo states.

These predictions did not come out of nowhere, but rather from "the notifications we receive at the syndicate," says Suleiman Haroun, President of the Private Hospitals Syndicate in Lebanon, based on complaints that share a common cause: an inability to continue. In numerical terms, Haroun points to at least 10 complaints from hospitals indicating that they can no longer operate under the current financial situation. Although the fate of these institutions has not yet been determined, Haroun does not rule out the possibility of some of them choosing permanent closure, after losing the ability to balance their expenses with their revenues, or as Haroun puts it, the "cost differential," which has sometimes been measured in millions of dollars... indicating existential crises when comparing the dollar with the current state of the Lebanese pound.

**Three Reasons**

When discussing the reasons that have led to this situation, Haroun outlines three main causes underpinning these options: Firstly, the decline in hospital occupancy rates, where 50% of beds are now out of service "because patients can no longer afford the significant excess charges incurred in hospitals," says Haroun. The consequences of this reason are evident in many hospitals resorting to closing some departments and merging others. The second reason pertains to the cost of medical supplies, all of which have exited the support framework, forcing hospitals to pay these expenses in fresh dollars or at the parallel market exchange rate. Even supplies that were previously not charged are now burdening, like needles, gauze, and gloves. The decision to lift support extends to other "services," including both medical and non-medical food.

Finally, the third reason revolves around fuel prices, specifically diesel, which have become dollar-indexed. In the latest studies conducted by the syndicate, the cost incurred by hospitals related to "employee salaries" has become equivalent to double those salaries.

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