The opening up of beds at a private hospital run by the Chinese University of Hong Kong (CUHK) for use by public healthcare system patients is a triple win, Secretary for Health Lo Chung-mau said on Friday.

The move is part of a repayment deal for a loan made by the government for the development of the CUHK Medical Centre in Sha Tin.

It will see the centre allocate 120,000 inpatient bed days over a 15-year period till 2037 to repay interest on the HK$4.033 billion building loan, with the principal set to be repaid in March next year.

At a Legislative Council health panel meeting, Lo said the deal would allow Hospital Authority patients to receive faster treatment as well as enjoy services at the private hospital at public healthcare rates and reduces the financial burden on the university, which is planning to help the centre repay the loan.

He told lawmakers the authorities have agreed to allow the centre to repay the principal by March, ahead of the 2028 deadline that had been agreed after the centre twice sought repayment extensions.

The interest due under the loan is a different matter.

Under the original agreement, the HK$4.033 billion loan was interest-free for the first five years starting from March 2017, with the government starting to charge interest at a floating rate since 2022.

"Even though it has not repaid the principal, it will not pay the interest early either. The interest for these five years, from 2022 to 2027, will be fulfilled through services – specifically, the 120,000 in-patient bed days," the health secretary said.

University Council chairman John Chai told lawmakers that the institution plans to offer a loan to the centre or provide a guarantee that allows it to secure bank loans.

While the council has yet to make the final decision on the issue, he assured lawmakers that it will not take money away from funds that have been designated for other specific purposes.

"Between 2024 and 2025, the investment returns from CUHK’s reserves were insufficient," Chai said.

"A CUHK dedicated fund saw a more favourable increase. Therefore, CUHK is considering using the portion of the fund not earmarked for specific purposes to provide a loan to CUHK Medical Centre."

Lo said the university, CUHK Medical Centre and the Hospital Authority would sign a memorandum of understanding to further step up cooperation so as to highlight the centre's role as a non-profit teaching hospital in the city's healthcare system, as well as its role as a bridge connecting both the public and private healthcare sectors.

The move will also showcase the centre's commitment to promote sustainable development of healthcare services that offers the public more choices.


Edited by Thomas McAlinden