– More state funding for research and teaching in non-medical medicine
Rhineland-Palatinate has significantly increased its financial support for research and teaching at the Mainz Medical University, which is suffering from a widespread deficit, in recent years. The so-called state funding contribution has grown by around a quarter from €95.04 million in 2020 to €119.19 million in 2024, according to a response from the Mainz Ministry of Science and Health to a query from the CDU state parliamentary group.
The adequate funding of the Medical University in the areas of research and teaching and its impact on the overall economic viability of the institution, which competes with other university clinics, has been a topic of discussion for some time. However, substantial deficits arise in medical care. Treatments are financed on a case-by-case basis by payers such as health insurers, the ministry explained. However, these flat rates have not covered costs in recent years. In 2023 alone, the Medical University ended the year with a loss of around 113.6 million euros.
Since healthcare is not profitable, the Medical University takes out operating loans, which have now accumulated more than half a billion euros. These cannot be reduced as long as the institution continues to record losses. The state assumes the guarantee for these loans, i.e. it is liable if the Medical University can no longer repay them, which represents an indirect burden on the state budget. The Medical University can therefore only take out loans within the framework of a credit authorisation decided by the state parliament, which is currently set at 750 million euros.
The deficit must be reduced to zero in five years
However, the Medical University should not continue to run a deficit indefinitely. The supervisory board, chaired by Health and Science Minister Clemens Hoch (SPD), has instructed the management to develop a concept before the end of the year that would allow the losses to be reduced to zero within five years.
In 2019, the Medical University commissioned the auditing firm KPMG to conduct a study of its financial equipment, also in comparison with other university clinics. However, the results of this analysis are of limited significance, as there are very different financing systems for university clinics. “The state budget cannot be based on the comparisons made in this investigation,” writes the ministry. Instead, the Medical University is asked to present its needs, which will then be discussed. Nevertheless, the discussions between the Medical University and the ministry, which were also influenced by the study, have contributed to a certain extent to greater objectivity in the matter.
In addition to the state’s financial support for the Medical University, the state parliament has granted an increased credit authorisation of 750 million euros to help reduce the deficit, according to the response from the Ministry of Science and Health.
Recognizing the need for a sustainable financial solution, the supervisory board, led by Health and Science Minister Clemens Hoch, has instructed the Medical University’s management to develop a strategy before the end of the year, with the aim of eliminating the deficit within five years.