Many private hospitals in Vietnam close to bankruptcy
22-Mar-16, Vietnam News
Private hospitals are struggling to receive patients, with most of them operating at 40-50 per cent of their capacity, according to the Việt Nam Private Hospital Association.
%20VNA%20VNS%20Photo%20Huu%20Oai.jpg "Many private hospitals in Vietnam close to bankruptcy (c) VNA VNS Photo Huu Oai")
Image: VNA / VNS Photo Hữu Oai
Many private establishments with investment costs of thousands of billions of đồng are on the edge of bankruptcy, said Nguyễn Văn Đệ, chairman of the association.
Most incentive policies are intended for public hospitals, not for private hospitals, Đệ said. For example, public hospitals are eligible for ODA funds with the Government acting as a guarantee, but private hospitals have to take out commercial loans at high interest rates.
Construction of new hospitals is not allowed downtown, which makes it difficult for them to attract affluent patients. Lack of qualified physicians is also a major obstacle facing private hospitals.