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The Budapest Mayor’s Office approved requests from two hospitals to transform into public benefit companies (Kht.), a status giving them financial flexibility and the opportunity to involve private capital.

Following the example of Budapest-based Schöpf-Merei Hospital, which turned into a Kht. in December 2004, now Budai Pediatric Hospital and the Visegrád Rehabilitation Center can become public benefit companies. “All three hospitals will maintain their original function,” Deputy Mayor Andrea Szolnoki told HVG, adding that the Kht. form is suitable for involving private investors.

As a result of the change in status, the municipality now anticipates that HUF 800 million will be invested into Schöpf-Merei in the near future. Likewise, private investors are expected to bring fresh funds to the Budai Pediatric Hospital, which operates 105 beds.

The Budapest Municipality preserves its 100% ownership of the new Kht. companies; and neither the land nor the buildings will be included among the assets of the companies, said Imre Ikvai-Szabó, head of the healthcare committee of the Budapest general assembly. Dismissing opposition opinion that the transformations are part of efforts to sell off the hospitals, Ikvai-Szabó added that the hospital companies will be entitled to use the land and the buildings only for the purposes connected to their core operations.

 

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