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

Question:

     In 2015, the Government provided CUHK Medical Centre Limited with a loan of $4,033 million for the development of the CUHK Medical Centre (CUHKMC). Following approval from the Finance Committee of this Council, the first repayment date of the loan was extended to 2028. In this connection, will the Government inform this Council:

(1) as the Chief Executive Officer (CEO) of CUHKMC told the media in recent months that CUHKMC achieved its first monthly breakeven in November last year, whether the Government knows the actual figures of CUHKMC's revenue, operating costs, as well as profit/loss before interest, taxes, depreciation and amortisation (EBITDA) for November and December last year, and how such figures compare with those for the same period in 2024;

(2) as according to the paper submitted by the Government to the Finance Committee of this Council on February 28 last year, CUHKMC's actual EBITDA figure for the first half of the 2024-2025 financial year was a loss of $77 million, while the projected figure for the whole year was a loss of $54 million (implying that there would be a profit of about $23 million in EBITDA for the second half of the financial year), whether the Government knows if there is any discrepancy between the actual EBITDA figure and the projected figure for that financial year; if so, of the reasons in details; and

(3) as the CEO of CUHKMC has previously indicated that it would be quite difficult for CUHKMC to commence repayment in 2028 as scheduled, whether the Government has formulated contingency plans in this regard?

Reply:

President,

     The consolidated reply to the question raised by the Hon Chong Ho-fung 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.

     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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