Grudziadz: The confusion around the indebted hospital continues

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The fate of the Regionalny Szpital Specjalistyczny im Bieganskiego in Grudziadz is still in question. The city is seeking a government loan to save the facility, but its acquisition is under question, informs Puls Biznesu.

Total debts exceed PLN 0.5bn

As we informed in June, the debt of the Grudziądz hospital is record-breaking in Poland and amounts to over PLN 450m. In addition, the company Grudziadzkie Inwestycje Medyczne, which a few years ago took over part of its property from the hospital, owes PLN 120-130m. This affects the financial situation of the local government, which owns the hospital. Until now, it had to cover the annual operating losses of the facility. Now it will also take over its debts.

A few months ago, Grudziadz signalled a liquidity risk and the impossibility of adopting a budget and a long-term financial forecast. As a result, the Regional Chamber of Auditors called on the city to present a recovery plan. The city is entitled to a government loan, which would be used to pay off the hospital’s debts, Puls Biznesu reports.

Grudziadz counts on a government loan

Originally, the support from the government was to be PLN 250m. This is the total amount provided for in the Budget Act for all self-governments covered by the recovery procedure. However, Grudziadz is seeking to increase the loan amount to PLN 320m. This is necessary in order to reach the budget for 2020.

In order to save the hospital, in December, the local government sold the infrastructure of the stormwater drainage system to Miejskie Wodociagi i Oczyszczalnia in Grudziadz (MWiO), informs the newspaper. It gained PLN 60m in this way, but this is a drop in the ocean of needs of the indebted hospital.

If the loan does not come to fruition, the city wants to return to its earlier plans to establish the Grudziadzki Holding Komunalny(GHK), whose sole owner will be the Municipality of Grudziadz. The Holding will take over partial shares in five municipal companies, for which it will obtain a loan of PLN 240m. The local government has the time until March to solve the problem. After this date, the hospital will be threatened with liquidation

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