Following is a question by the Hon Chan Siu-hung and a written reply by the Secretary for Health, Professor Lo Chung-mau, in the Legislative Council today (February 4):

Question:

     Last year, the Finance Committee of this Council approved to further extend the repayment of the Government loan of $4,033 million by the CUHK Medical Centre (CUHKMC) for three years. However, the Chief Executive Officer (CEO) of CUHKMC has told the media in recent months that it will be difficult to commence repayment of the loan to the Government as scheduled in 2028. Regarding the operational status and financial situation of CUHKMC, will the Government inform this Council:

(1) whether it knows the latest operational status of CUHKMC (including the inpatient bed occupancy rate and the average number of inpatient bed days, as well as the utilisation rates of different services, such as outpatient services);

(2) given that, while the CEO of CUHKMC has previously indicated that CUHKMC has to achieve an annual total revenue of $6 billion before it can repay the Government loan as scheduled in 2028, the total revenue of CUHKMC last year was only $2.38 billion, whether the Government knows the latest financial situation of CUHKMC (including profit/loss before interest, tax, depreciation and amortisation), and of CUHKMC's operational plans and proposals in place to achieve the targets of financial sustainability and repayment of loan as scheduled; and

(3) as the CEO of CUHKMC has pointed out that the original projection of an annual total revenue of $7 billion in three to five years after the commissioning of CUHKMC as made by the independent financial advisor was "too optimistic" and "highly exaggerated", whether the Government knows if CUHKMC has updated its financial projections based on the latest operational status; if so, of the details of the latest projections; if not, the reasons for that?

Reply:

President,

     The consolidated reply to the question raised by the Hon Chan Siu-hung is as follows: 

     The CUHK Medical Centre (CUHKMC) is a non-profit-making private teaching hospital wholly owned by the Chinese University of Hong Kong (CUHK), with land and loan granted by the Government to the CUHKMC. The CUHK and the CUHKMC bear the responsibility to ensure the hospital's proper governance and operation, as well as delivery of relevant obligations, in accordance with the Service Deed and the Loan Agreement entered into with the Government. In line with its not-for-profit nature, all surpluses of the CUHKMC will be ploughed back into the hospital for its own development and the Faculty of Medicine of the CUHK for research and teaching. The CUHKMC performs a unique role in promoting research and development of the latest medical technologies in local medical schools and providing opportunities for their clinical applications.

     Based on the latest information provided by the CUHKMC, for the full 2024-25 financial year (i.e. from July 2024 to June 2025), the CUHKMC recorded a loss before interest, taxes, depreciation and amortisation of about $185 million, which differed from the previous projection. This was mainly due to the lower-than-projected actual business activity and revenue levels during the period. In addition to competition in the healthcare services market, the business operation and service expansion were also impacted by intensifying competition for the recruitment and retention of personnel in the healthcare sector. Figures on the service output of the CUHKMC are tabulated below:
 

Service item	First half of 2025-26 financial year (Percentage change compared with first half of 2024-25 financial year)
Inpatient bed utilisation rate	61% (Note)
Total number of inpatient bed days	24 939 (+9%)
Total number of day-patient discharges	8 291 (+18%)
Total number of operations and procedures	15 008 (+13%)
Total number of outpatient attendances	158 666 (+6%)

Note: As the inpatient bed utilisation rate is expressed as a percentage, the year-on-year percentage change for the same period is not applicable. The inpatient bed utilisation rate for the first half of the 2024-25 financial year was 56 per cent.

     As regards the overall financial position of the CUHKMC for the 2025-26 financial year, the Health Bureau has earlier required the CUHK and the CUHKMC to regularly report its financial status as well as review and update the future financial projection(s). The Health Bureau, jointly with the CUHK and the CUHKMC, will make an overall report to the Panel on Health Services of the Legislative Council later this year, and it is not appropriate at this stage to comment on the performance of the CUHKMC for individual months. The Health Bureau has noted that there was a change in the management of the CUHKMC last year. Since then, the CUHKMC has progressively introduced a series of measures to improve its financial situation and control its costs. They include reviewing and adjusting the hospital's service charges and gradually increasing its service volume, such as putting additional operating theatres and hospital beds into service in phases. The CUHKMC has also strengthened control over operating costs (including professional fees and direct costs) to mitigate the overall financial impact.

     In the light of recent media reports, the CUHKMC has reiterated to the Government that it will continue efforts to improve its financial and operational performance. The Health Bureau will continue to closely monitor the operation and financial position of the CUHKMC, maintain close communication with the CUHK on matters relating to the governance and management of the hospital, and continue the dialogue with the CUHK regarding the future operation or financial situation of the hospital as well as any proposed financing options. The Health Bureau has not received any further request for delayed repayment from the CUHKMC thus far. The Government will not rule out any possible solutions should structural problems emerge in the operation and finances of the CUHKMC.

Ends/Wednesday, February 4, 2026
Issued at HKT 15:00

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