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At the end of July a private hospital Geo Medical from Katowice suspended its activities. The facility informed the National Health Fund (NFZ) about a sudden lack of possibilities to provide health services.
Investment in a hospital of PLN 150m
Geo Medical Hospital started operating in September 2017. It was to be a part of a larger complex, which apart from the hospital was to include a diagnostic and therapeutic centre and a hotel. The value of the entire investment was to exceed PLN 260m, of which PLN 150m was invested in the construction and equipment of the hospital. The investor was Adam Zaremba-Smietanski, a Krakow businessman.
However, from the very beginning of its operation, the modernly equipped institution was struggling with financial problems. It was not included in the so-called network of hospitals and had to apply for financing during competitions (problems with financing the National Health Fund are a common problem of most private hospitals, according to the PMR survey). In 2019, the contract increased to PLN 6.1m, compared to PLN 4.2m in the previous year, but it covered only hospital treatment in the field of urology and plastic surgery and some diagnostic tests. In 2018, the net loss of GeoMedical Sp. z o.o. amounted to PLN 9.5m.
New management board of GeoMedical in mid-August
According to PAP, SanGeoMedical company was established in March 2019 as the majority shareholder in GeoMedical. This was to ensure optimisation of the hospital’s operations and development in the commercial services segment. However, this did not happen. In addition, GeoMedical’s Vice President of the Management Board resigned in mid-July. Due to the provisions of the articles of association of the company on joint representation, the management board could not function. Therefore, President Ewa Foltanska-Dubiel was also forced to resign from her function. A shareholders’ meeting was convened on 13 August to appoint a new management board.
During nearly two years of its operation, the hospital has performed over 2,000 operations and procedures and 1,700 diagnostic tests. The services of specialist outpatient clinics were used by 9,100 patients. According to PMR data, the facility has about 100 beds. At the time of informing about the suspension of activity, no patients stayed in the facility.