European Union of Private Hospitals

Coronavirus: ASPE proposes economic-financial measures to make health establishments viable

The Spanish private health sector asks the Spanish Government to maintain these measures for two months.
The Spanish Private Health Alliance (ASPE) has proposed to the Government 10 measures to ensure the economic viability of the private health sector, which is currently collaborating with public health authorities in the fight against the COVID-19 pandemic.

Under the State of Emergency, the Spanish Government has ordered the deprogramming of all non-urgent-elective health activity, reducing it approximately by 80 %, making the resources of the sector available to the Health Councils in all parts of Spain and especially in the COVID-19’s areas of greatest spread, where private hospitals operate in an integrated manner with public systems. The private healthcare sector is treating 19 percent of hospitalized patients and 10 percent of ICU cases. At this time, 100% of the structures remain in operation, but without main income activity, which can have repercussions on their present and future sustainability in many cases.”

Given this situation, ASPE, which represents more than 80 % of Spain’s private hospitals (468) and up to 925 outpatient centres, has asked the Government through the Ministry of Industry for urgent measures to be able to face the enormous waste in resources.

For Carlos Rus, president of ASPE, “we support the preservation of employment and the full productive capacity in the fight against COVID-19 but we need urgent measures that allow the financial viability of hospitals and private clinics which are facing a serious crisis of liquidity, jeopardizing the continuity of many hospitals.”

ASPE proposes a package of economic-financial measures to make health establishments viable under the current circumstances:

  • 1. In relation to taxes and fees:
    • a. Exemption from Social Security fees for the duration of the State of Emergency.
    • b. Exemption from the payment of taxes and withholdings of personal income tax during the same period.
    • c. Deferrals and / or bonuses in Social Security.
    • d. Deferrals and / or discounts in Corporate Tax and IBI and Tax credits for increased health workforce.
  • 2. Access to lines of financing to be able to access sufficient financial resources to meet current spending.
  • 3. Access to guarantees established in RD 8/2020 or to the ICO lines of working capital financing to allow coverage of the working capital deficit.
  • 4. Liquidity lines by banks guaranteed by the State to face cash payments required by health providers (for example, EPIs).
  • 5. Soft loans for investment in essential material in COVID-19.
  • 6. In order to ensure that credit reaches the sector, access to a specific financing line for the sector, amounting to 75% of the hospital sector revenue for 2 months.
  • 6. In order to ensure that credit reaches the sector, access to a specific financing line for the sector, amounting to 75% of the hospital sector revenue for 2 months.
  • 7. Reduction of health VAT at a super-reduced rate to facilitate the purchase of materials and equipment for health care.
  • 8. Subsidies for purchases due to the high increase in the prices of medical supplies: masks, gloves, gowns, medicines.
  • 9. Direct aid to establishments involved in the care of patients with coronavirus.
  • 10. Approval of exceptional payment rules:
    • a. That private establishments under public contracts, which charge a fixed part of the contract, continue receiving this part
    • b. Payment periods not greater than 60 days by insurers and by the State