Santa Casa de São Paulo sells Santa Isabel Hospital to Rede D’Or for 280 million Brazilian reals – Economy

a Santa Casa de Misericordia de Sao Paulo, one of the city’s most traditional non-profit hospitals, announced the sale of its own unit, Santa Isabel Hospital, to Rede D’Or Sao Luiz For 280 million Brazilian riyals. The deal was unanimously approved by the Irmandade da Santa Casa Board of Directors.

According to Santa Casa, management sold the operation, while retaining ownership of the property, to reduce bank debt and invest in improving patient care at the hospital. One Health System (SUS).

“The Foundation is liquidating its bank debt and will therefore continue to search for sustainability, resuming its investment capacity and services to SUS patients, by modernizing and expanding our facilities,” said Doctor Vicente Renato Paolo, Santa Casa. note.

In addition to R$280 million, Santa Casa will receive an annual rent paid by Rede D’Or, which will also go directly to debt settlement. In addition, the acquiring company will also invest in the renovation of 3 thousand square meters of space to care for patients coming from SUS.

According to Santa Casa, there will be no layoffs at Santa Isabel Hospital, and existing staff will maintain their normal activities.

long crunch

Santa Casa de São Paulo has faced a financial crisis, at least since 2014. As a result, there has been a decline in many services provided by one of the largest and most important hospitals in the city of São Paulo. At the time, employees’ salaries were also behind schedule.

However, this is an issue that affects many Santas Casas across the country. In April, during a public hearing, the president of the Federation of Santas Casas Hospitals and Charitable Hospitals (CMB), Mirocles Campos Véras Neto, estimated the debts of these institutions exceeded R$8 billion.

In the case of the São Paulo unit, there was some sort of management shock to pull Santa Casa out of the worst moment. For this, it has secured the support of the Foundation for Management Institute (FIA) to create a broad process of organizational restructuring.

Last year, it was among the largest debt enterprise loan with Federal Savings BankAn amount of 360 million Brazilian riyals and 50 million Brazilian riyals with suppliers and employees.