FRANKFURT Jan 29 Germany's Rhoen-Klinikum
has struck a deal with the state of Hesse over a
hospital which caused two profit warnings last year, with the
state agreeing to pay subsidies and the company pressing ahead
with a delayed therapy centre.
Under the deal, the Giessen-Marburg hospital, Germany's only
privately-owned teaching hospital, will discuss measures to
boost efficiency with workers' councils and unions, but will aim
not to fire any employees before 2015.
Rhoen-Klinikum Chief Executive Martin Siebert said last week
consultants had drawn up a plan that would see the hospital
return to profit by the end of 2014 by cutting more than 250
jobs, among other measures.
Rhoen-Klinikum has also promised to start running a
high-tech particle therapy centre, owned by Siemens,
by the end of the year and to invest in new psychiatric
The state said it would provide up to 16 million euros ($22
million) of subsidies each year for the hospital.
The company will, however, have to pay a monthly fine until
it has fulfilled its investment obligations for the therapy
unit, which was due to come into operation at the end of last
In exchange, the state of Hesse will not sue the group and
will get more say in the hospital's running.
The company said last week it was seeking shareholder
approval for collaboration agreements after investors blocked a
merger with a larger hospitals firm.
($1 = 0.7429 euros)
(Reporting by Peter Dinkloh and Andreas Kroener; Editing by