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No automatic process involved in the potential repurchase of UKGM shares.

If the private owners of Giessen and Marburg University Hospital decide to sell their shares, the state might consider purchasing them, according to the black-red coalition agreement.

SymClub
May 27, 2024
1 min read
NewsGovernmentWiesbadenAutomatismBuybackHesseHospitalsCoalition agreementUniversity HospitalMarburgSPD
Timon Gremmels (SPD), Minister for Science and Research, Art and Culture in Hesse, sits on the...
Timon Gremmels (SPD), Minister for Science and Research, Art and Culture in Hesse, sits on the Green Sofa during an interview in Wiesbaden.

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Medical Institutions - No automatic process involved in the potential repurchase of UKGM shares.

Timon Gremmels from Hesse's Science Ministry (SPD) thinks the state could potentially repurchase the private University Hospital Giessen and Marburg (UKGM) if its owners wanted to sell their shares. He mentioned this possibility during an interview with dpa in Wiesbaden, referring to the black-red coalition agreement. Gremmels stated, "we have this option, and if it arises one day, we'll examine it." Nonetheless, he added that it's not guaranteed and elaborated, "there's no auto-pilot."

UKGM is the only private university hospital in Germany. In 2006, Rhön-Klinikum AG, which was later acquired by the Asklepios hospital group, bought 95% of the hospital. The state of Hesse owns the remaining 5%. Gremmels shared, "it's no secret that SPD has never been fond of this privatization." He further elaborated, "we've always been critical of it, and that hasn't changed."

Despite the negative past views, Gremmels acknowledges the "Future contract plus" for UKGM signed in February 2023, which he considers a solid foundation. After 2 years of intense discussions, Hesse and the private owner agreed to invest 850 million euros in the UKGM over a decade. The stakeholders in this arrangement include the state of Hesse, Rhön Klinikum AG, Asklepios Kliniken GmbH as the private majority owners, UKGM, and the two universities. Two-thirds of the funds will come from the state and one-third from the company. Additionally, the "change of control clause" ensures that the state has the right to repurchase the hospital if the ownership structure changes.

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Source: www.stern.de

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