CUHK Medical Centre loan repayment deal 'a triple win'

The opening up of beds at a private hospital run by the Chinese University of Hong Kong (CUHK) for use by public healthcare system patients is a triple win, Secretary for Health Lo Chung-mau said on Friday.

The move is part of a repayment deal for a loan made by the government for the development of the CUHK Medical Centre in Sha Tin.

It will see the centre allocate 120,000 inpatient bed days over a 15-year period till 2037 to repay interest on the HK$4.033 billion building loan, with the principal set to be repaid in full in March next year.

Lo, in a Legislative Council health panel meeting, called the deal a triple win as it allows Hospital Authority patients to receive faster treatment as well as enjoy services at the private hospital at public healthcare rates and reduces the financial burden on the university, which is planning to help the centre repay the loan.

He told lawmakers the authorities have agreed in principle to allow the centre to repay the loan in full by March, ahead of the 2028 deadline that had been agreed after the centre twice sought repayment extensions.

The interest due under the loan is a different matter.

Under the original agreement, the HK$4.033 billion loan was interest-free for the first five years starting from March 2017, with the government starting to charge interest at a floating rate since 2022.

"Even though CUHK Medical Centre will be repaying the loan [principal] in full, it will not be repaying the interest due during this five-year period [between 2022 and 2027]. It will not repay the interest early," Lo said.

"For interest due in the five years between 2022 and 2027, they will [repay] by allocating about 120,000 in-patient bed days [for use by public hospitals]."

Lawmaker Chan Pui-leung asked what the government would do if CUHK Medical Centre fails to meet its obligation to allow access to more than 120,000 bed days as that would result in changes having to be made to the 15-year interest repayment plan in 2037.

Lo said the centre could make repayments if its financial situation improves but that would depend on the plan it comes up with at the time.

University council chairman John Chai told lawmakers that the institution plans to offer a loan to the centre and/or provide a guarantee that allows it to secure bank loans.

While the council has yet to make the final decision on the issue, he assured lawmakers that it will not take money away from funds that have been designated for other specific purposes.

“Between 2024 and 2025, CUHK recorded solid investment returns, its funds have particularly recorded more desirable growth," Chai said.

"Therefore, CUHK is considering using part of those funds that have no designated purpose yet to provide a loan to CUHK Medical Centre."

Lo said the university, CUHK Medical Centre and the Hospital Authority would sign a memorandum of understanding to further step up cooperation so as to highlight the centre's role as a non-profit teaching hospital in the city's healthcare system, as well as its role as a bridge connecting both the public and private healthcare sectors.

The move will also showcase the centre's commitment to promote sustainable development of healthcare services that offers the public more choices.

Edited by Thomas McAlinden ...