PMR Hospital Market Situation Indicator is the highest in public units, but will it stay so for long?

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Ten post jest także dostępny w języku: polski

Research carried out by PMR on the hospital market over a period of almost 10 years suggests that the situation on the inpatient market was at its worst in the autumn of 2020. This applies to hospitals of all kinds: public and non-public, operating as companies with State Treasury or local government units, and private facilities. This situation was affected not only by a reduction in the number of procedures associated with the coronavirus epidemic, but also by growing debt and inadequate funding, along with a lack of stimuli for the development of private initiatives, according to the latest PMR report, entitled: “Public and non-public hospital market in Poland 2021. Investment plans and comparative analysis by voivodeship”.

Most hospitals indicate a deterioration in the financial situation in 2020

Regarding questions about the current financial situation of the hospital (autumn 2020), almost 60% of hospital managers respond that the situation is worse compared to the previous year. In recent years there have been no changes in valuations for many procedures, and the difficult situation of hospitals in Poland has been aggravated by the crisis caused by the coronavirus epidemic.

However, among public hospitals, the percentage of entities indicating a worse situation than in 2019 is the lowest (37% assess it as definitely or slightly worse). The reason for this may be, among other things, their acceptance of the most severe cases, whose treatment could not be postponed. As a result, they secured part of the revenue that was lost by units that more often carry out planned procedures.

Private hospitals most affected?

The PMR Hospital Market Situation Indicator (Business Climate Index) is currently at its lowest level at private hospitals, in comparison with facilities of other kinds (public and transformed). In 2020 it reached -5.7, with the lowest possible value of the index being -15. This is the worst result in the entire measurement period (since 2012). It reflects a high percentage of planned procedures which had to be postponed or cancelled by private hospitals in 2020, along with the economic recession which is affecting the purchasing power of potential private hospital patients.

In addition, an analysis of the index over the past few years clearly shows that the economic situation on the private hospital market has been deteriorating since the beginning of 2017, when the plans of the hospital network were already clear. In the wake of its introduction, some private hospitals have lost contracts and also found it more difficult to take advantage of the public funding system.

chart climate index hospitals

Detailed information on the financial results of hospitals and their investment plans can be found in the PMR report: “Public and non-public hospital market in Poland 2021. Investment plans and comparative analysis by voivodship“.

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