Private sector reluctant to enter commercialized hospitals

Representatives of leading private healthcare providers have warned that the new plan to commercialize all public hospitals - unveiled yesterday with much fanfare by the ruling Civic Platform (PO) - will fail to attract private investors as long as they are barred from acquiring stakes of above 49% in the hospitals.

Under the proposal, all hospitals would be required to transform themselves into commercial companies and local councils would be given more freedom to manage them efficiently, possibly in partnership with private investors.

However, much to the disappointment of private sector companies, PO MPs indicated yesterday that local authorities would still be required to retain majority control over their hospitals.

"We want to buy into public hospitals, because it is a potentially profitable business, especially given their contracts with the National Health Fund (NFZ), but only as long as we are able to exercise full control," said Adam Rozwadowski, CEO of Lux-Med.

His view is echoed by Jarosław Leszczyszyn, the CEO of EMC, the listed hospitals group, "Unless we can have majority control we are not interested. Local councils have political motivations that are totally different from those of private owners."

Private investors may find an ally in Finance Minister Jacek Rostowski, who is reportedly lobbying inside the cabinet to scrap a requirement for commercialized hospitals to reinvest all profits in core operations, an idea promoted by Health Minister Ewa Kopacz. (Puls Biznesu, p. 1, 4-5) R.M.