Sanierung & Restrukturierung
Providers
Against the specter of widespread hospital closures
For a sustainable turnaround in hospitals: Our consultants adjust the right parameters and effectively restructure and reorganize
Current Challenges
German hospitals are in poor condition – and not just since the Covid-19 pandemic. Many institutions had already reached a critical turning point in the past two decades. Over half of public hospitals and more than a third of all hospitals are considered to be in deficit. The causes of economic weakness are diverse, often structural in nature. Rural clinics must assert themselves against urban facilities. Socio-economic conditions, the intensity of competition, and infrastructural prerequisites in terms of building structure, attractiveness for patients and employees, as well as growth opportunities play a decisive role in the success – or failure – of a clinic.
Public and non-profit clinics in particular are considered unstable, as the states have long failed to meet their investment obligations.
Investment funds that were taken on by the hospitals themselves were only partially generated from profits and were largely financed with borrowed capital. A forced strategy with unpleasant consequences. To cover interest and repayment, an EBITDA margin of 4-6% is required. This margin has been under attack in recent years due to legislative initiatives. The consequence: Numerous clinics are no longer able to meet their accumulated obligations over the years. Closures and widespread hospital deaths are looming.
The good news: There are several adjustments that can be made to make crisis-ridden or even insolvency-threatened hospitals fit and competitive again. WMC HEALTHCARE knows the structural and operational levers that must be individually addressed in each case to successfully and sustainably restructure or reorganize a clinic.
Our Solutions
Restructuring and reorganization are usually so complex that they require more than classic management consultants. WMC HEALTHCARE supports with its bundled expertise from medical professionals and nursing staff, IT experts, clinic managers, programmers, controllers, and financial experts. The measures resulting from our support are profound and comprehensive. They range from organizational changes to improve patient treatment processes, through classic cost-saving programs, to consolidation strategies across clinic locations.
From the service portfolio to internal processes to the region in which the hospital is located, there are numerous aspects that are considered as part of an initial analysis.
Our analytics experts work through company figures and combine the most important key figures – for example from service provision, personnel management, and accounting. Weaknesses and problem areas become visible and concrete. As a result, initial opportunities and directional paths to a sustainably economically secure future are already emerging.
Our consultants design, discuss, and evaluate a wide variety of scenarios – across all professional groups and management levels. Capacities are adjusted, service offerings and infrastructure are bundled. Our support ranges from the first consultation to the completion of measures. Regular working groups, on-site inspections, interviews, and reporting with the most important key figures are just as much a part of this as training, for example on preparing documents for liquidity planning. The WMC consolidation strategy is individually tailored and ranges from pooling resources in administrative or non-medical areas – catering, cleaning, logistics – to merging departments across locations, to closing entire hospitals with corresponding redistribution of patients to other locations. Always in focus of our measures: the quality of patient care.
Your contact person
Christian Eckert
Phone: +49 (0) 89 26 20 84 0 | Email: kontakt@wmc-healthcare.de
Our Services for Providers (Hospitals)
Select additional topics: