MIL OSI Translation. Government of the Republic of France statements from French to English –
Source: Swiss Canton de Vaud – news in French
Communiqué from the Council of State
State of Vaud
Posted on November 20, 2020
Riviera-Chablais Hospital (HRC)
The commissioning of the new Rennaz hospital having plunged the HRC into serious financial difficulties, the Vaud and Valais State Councils asked the hospital to present a plan to return its operations to financial equilibrium. This ambitious plan, which provides for a return to balanced accounts in 2026, is accompanied by substantial financial support from the two cantons of 125 million francs over 15 years. This process comes at the same time as the final regularization of the guarantees granted to the HRC allowing it to complete its construction and renovation project.
Following the relocation of the five acute care sites constituting the HRC to the Rennaz site, significant budgetary difficulties were noted at the start of 2020. While the cantons were preparing to regularize the guarantees related to construction of Rennaz and the renovation of the Monthey and Vevey sites, the COVID-related crisis brought this work to an abrupt halt, forcing the two parliaments to grant urgently, as soon as parliamentary debates resumed, a temporary guarantee of 80 million euros. francs in order to enable the HRC to meet its commitments, both in terms of construction and operation. Since then, the final construction costs of Rennaz and a precise evaluation of the cost of the work of the Monthey and Vevey branches have been established. Moreover, the extent of the cash flow problems could be objectified. On this basis, as they had undertaken to do, the two Councils of State are now proposing to their respective parliaments to grant the complementary guarantee of the State of Vaud and Valais for construction costs, as well as the means. funds necessary for the HRC to operate. The regularization of guarantees for investments is done by decree, while the assistance that the cantons provide to the HRC for its operation is introduced in the intercantonal convention on the HRC.
The construction costs of the HRC, both for the new hospital in Rennaz and for the transformation of the two local branches of Monthey and Vevey, amount to a total of 400 million francs, while the guarantees already granted by the two cantons total CHF 330 million. The two Councils of State therefore request the granting of an additional guarantee of 70 million francs. At the same time, the financing of the equipment costs of the HRC, to the tune of around 35 million francs, is provided by its working capital, guaranteed by the two cantons.
The proposals of the two Councils of State contain three components. The first concerns the granting to the HRC of a single service of general interest (PIG) in connection with the cost generated by the merger of the five sites of the HRC, of 20 million francs in 2021. The second allocates a PIG of 7 million francs over 15 years, that is to say 105 million francs in total in connection with the expenses inherent to the agreed investment, because the deployed activity does not currently allow them to be financed. Finally, the latter provides an additional guarantee of 40 million francs allowing the HRC to ensure its cash flow using the financial markets. This financial support from the two cantons is accompanied by a plan to restore the financial balance essential to the sustainability of the HRC, the effects of which are estimated at 25 million francs by 2026.
As regards the guarantees granted by the two cantons on the working capital of the HRC, up to 90 million francs, they are maintained, but a modification of the intercantonal agreement is planned to allow the HRC to also finance its equipment through this and ensure its renewal.
Modification of the intercantonal agreement on the HRC
Part of the financial means is requested by a modification of the intercantonal agreement on the HRC. At the same time, other modifications to this convention are proposed, to follow up on the report filed by the BDO trustee on the governance of the HRC, as well as to adapt the text to current reality and future challenges. In particular, the two Councils of State propose to review the composition of the HRC Governing Board and to include in the intercantonal agreement the definition by the two cantons of a “strategy of the owner”, which will serve as a framework. the Governing Board to develop the institution’s vision and strategy.
The amounts requested from both parliaments are very large, but they reflect the current financial situation of the HRC. Subject to certain conditions, the support of the two Cantons is therefore essential to ensure the financial viability of the HRC in the medium term, enabling it to undertake the structural and organizational steps necessary for its recovery.
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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.