hospitals
Fresenius healthcare group tightens austerity measures
Fresenius wants to save at least 150 million euros by 2023. Photo: Arne Dedert/dpa
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The hospital operator and medical group is suffering from the consequences of the corona pandemic. A stricter austerity program should now help against the burdens.
The healthcare group Fresenius is tightening its austerity measures. After progress in its cost and efficiency program, the company wants to further reduce costs, as the Dax group announced on Tuesday.
He now wants to achieve savings of at least 150 million euros by 2023. Originally, Fresenius had aimed for more than 100 million euros.
The savings should come from the parent company and all four divisions – the hospital operator Helios, the dialysis subsidiary Fresenius Medical Care (FMC), the liquid medicine provider Kabi and the project subsidiary Vamed.
Fresenius expects that the program will initially cost a lot of money: this year the lion’s share of the expenses will be more than 200 million euros and in 2023 another 100 million.
Remodeling started
Fresenius CEO Stephan Sturm launched a conversion program in spring 2021. Fresenius and FMC, which is also listed in the Dax, are under pressure on the stock exchange. Several profit warnings spooked investors. In addition, the consequences of the pandemic are burdening the group, for example in the clinic division and in the dialysis business, where many kidney patients die of corona.
FMC announced in November that it would cut 5,000 jobs worldwide. By concentrating on two global segments, the group wants to eliminate duplicate structures and reduce annual costs by 500 million euros by 2025. The conversion to the new operating model should be achieved by 2023. FMC announced on Tuesday that most of the cost-cutting measures should be completed by 2024. In the coming years, 500 to 750 jobs in Germany are also to be eliminated. Details are still pending.