In recent years, the Hirslanden private hospital group has been grappling with challenges as it predominantly treats patients with basic insurance. This has resulted in a decline in profitability for the hospital operator. As the wealthy families behind Hirslanden’s parent company in South Africa remain uncertain about their intentions, there is uncertainty about the future of the business.
Hirslanden offers many benefits to patients with additional insurance, such as larger rooms, more food choices, and access to senior doctors. However, in Switzerland, fewer people can afford this level of insurance coverage. As a result, more patients are being treated in private clinics.
To address these challenges and improve profitability, Hirslanden is implementing cost-saving measures and increasing its focus on automation. The company aims to increase bed occupancy by investing in infrastructure and offering specialized services to retain supplementary insured patients.
Despite these efforts, Hirslanden remains under pressure to increase margins and compete with other healthcare providers in Switzerland. Its owners, Remgro and MSC, have long-term strategic plans for the business but have not yet released specific details on their expectations.
As Hirslanden repositions itself for the future, it must address cost pressures and improve efficiencies across all areas of its operations. Despite these challenges, Hirslanden remains one of the most profitable hospital operators in Switzerland and continues to face increased competition from other healthcare providers and rising costs within the industry.