Wetzikon Hospital is currently facing a severe financial crisis as creditors have rejected a proposed extension for a bond that was used to finance a new building.
The hospital has accumulated debts of CHF 285 million and is unable to meet its obligations, with a bond of CHF 170 million due for repayment in June 2024.
A restructuring plan was presented to the creditors, which included a three-year extension of the bond's term and increased interest rates. However, the proposal failed to secure the necessary two-thirds majority for approval.
The plan also included a debt reduction dividend of 30 to 35 percent, requiring creditors to forgo 65 to 70 percent of their claims. The hospital's management had also sought additional funds from shareholder communities to bolster its equity.
Efforts to secure state aid or private investors have been unsuccessful, leaving the hospital in a precarious position.
The hospital's operations continue, but the new building project is currently stalled. The upcoming meeting with creditors and stakeholders will be crucial in determining the contributions from owner municipalities and the extent of creditors' claims write-off.
The financial instability of Wetzikon Hospital raises concerns for local healthcare and the communities it serves, as reduced services or closure could have dire consequences for residents.
This situation highlights the challenges faced by healthcare institutions in managing debt and maintaining operational viability. The rejection of the restructuring plan emphasizes the importance of sound financial management and proactive measures to address debt.
The outcome of the next meeting will shape the hospital's future and the healthcare options available to the local population.