€2.4 billion deficit: the “unprecedented” deterioration of public hospital finances in 2023

Public hospitals experienced an "unprecedented" deterioration in their financial accounts in 2023, with an overall deficit that almost doubled to 2.4 billion euros , while private clinics saw their profitability decline, according to Drees, the statistical directorate of the social ministries. "The very marked deterioration" in the accounts of public hospitals "is explained in particular by the gradual withdrawal of exceptional support measures to deal with the health crisis," Drees indicates in its study.

The overall deficit of 2.4 billion euros represents 2.3% of the establishments' revenue, or "a proportion unprecedented since 2005, the starting point of the observations," she adds.

On the debt side, the Ségur de la Santé and its measures to restore financial capacity have continued to have an impact, with debt falling to 45% of permanent capital. But "the share of over-indebted establishments is rising again, without returning to its pre-crisis level (36% in 2023 after 34% in 2022 and 41% in 2019)," the experts note.

The DREES accounts are a benchmark, but they always appear with a certain delay. For 2024, the French Hospital Federation predicts a further increase in the public hospital deficit, which would reach 3.4 billion euros.

For private, for-profit clinics, the accounts remain generally positive in 2023, but show signs of deterioration. The sector reported an overall profit of €362 million, which, however, declined significantly to 1.8% of revenue, compared to 3.4% a year earlier. Furthermore, the proportion of loss-making establishments increased, to 32% in 2023, compared to 25% a year earlier.