Four in ten Belgian hospitals make losses

The general hospitals in Belgium have in total suffered a loss of 174 million euros last year, shows an annual analysis by the Belfius bank. Four in ten hospitals are facing a deficit.

Of the 89 general hospitals in Belgium, 34 finished the year 2023 in the red. Altogether, the hospitals recorded a loss of 174 million euros last year.

The result is slightly better than in 2022, when the loss amounted to 181 million euros, but that year was marked by a severe energy crisis and severe inflation. Those factors played much less of a role last year, but even then costs rose more than revenues. The main driver was staff costs, which rose by 6.6 per cent. Energy costs also remained high, perhaps because many hospitals are still tied to older energy contracts. 

Belfius did not make a concrete forecast for 2024 this time, because there are too many uncertainties, partly due to the final settlement of Covid-related government support. As the first six months of this year did indicate lower energy costs and a slower rise in staff costs, the bank does expect a slight improvement.

Still, Belfius’ chief economist Véronique Goossens is worried as, in addition to financial difficulties, staff shortages are persistent. Although the workforce increased by 6.6 per cent in 2023, there are still 4,000 vacancies, 2,700 of which are for nurses. Moreover, absenteeism - already high - in the sector is still rising.

“We are not happy if we look at the analyses of the past thirty years,” said Goossens. “Hospitals are no longer able to absorb shocks, governments have stepped in with billions and yet the situation has not improved.”

According to Goossens, new hospital funding is really urgent now, especially as the next shock - the impact of Donald Trump's re-election in the US on the European economy - is already upon us. “We are at a tipping point. We are hoping for momentum to get things done, because otherwise hospitals will not be able to invest enough in infrastructure and new technologies.”

^{ZAS Augustinus hospital in Antwerp © BELGA PHOTO WARD VANDAEL}