Hospital finances: the public deficit reaches a record level in 2024 with 2,9 billion euros

The finances of public and private hospitals continued to deteriorate in 2024, according to figures from the statistical department of the social ministries. The cumulative deficit in the public sector reached €2,9 billion, an increase of €0,5 billion compared to the €2,4 billion recorded in 2023. Relative to revenue, the net negative result of 2,7% had not reached such a level since 2005, the starting point of the available statistical series. Seven out of ten public hospitals posted a deficit.

This further decline is primarily attributable to the deterioration in operating profit, which has also reached an unprecedented low of 2,1% of revenue. Investment efforts have also slowed: reduced to 5,1% of revenue compared to 5,4% in 2023, they remain lower than depreciation charges, set at 6,1% of revenue, meaning that institutions are no longer able to offset the depreciation of their real estate and equipment assets.

A private sector that is not holding up as well as it seems

Private clinics present a seemingly less alarming picture, with a cumulative net profit of €194 million, representing 1% of revenue. However, this figure is significantly lower than the €331 million generated in 2023. The proportion of loss-making private facilities has risen to 36%, compared to 33% the previous year, and the debt-to-income ratio has now reached 21%, up from 19% in 2023. Furthermore, the private sector's results are marked by significant disparities across different activities: psychiatry boasts a profitability more than eleven times greater than that of medical, surgical, and obstetric facilities.

The outstanding debt of public hospitals has decreased for the third consecutive year, to €30 billion, representing 27,8% of revenue. This positive sign, however, remains isolated in an overall worrying picture: the permanent capital of these institutions is declining despite the funding provided by the Ségur de la Santé (a major healthcare reform initiative), indicating that government support plans are managing to contain debt but not to halt the profound deterioration of the financial stability of hospital structures.