Hospital turns profit after ending China ventures, staff get record bonuses

Changhua Christian Hospital has turned a corner financially after a period of significant losses under former president Kuo Shou-jen, who had championed medical technology ventures in China. His successor, Chen Mu-kuan, took over in 2018 and immediately redirected the hospital's focus to its core medical operations, cutting "money-burning" China-focused policies.

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Since President Chen Mu-kuan took office in 2018, the hospital began to turn losses into profits.

During Kuo's tenure, the hospital's net profit in 2017 was negative. His strategy of collaborating with Chinese hospitals to profit from medical technology did not yield the expected financial returns, instead leading to a substantial decline in earnings. This approach was promoted by Kuo, a renowned breast cancer specialist.

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Cutting the money-burning China policy and focusing on the medical profession allowed profits to improve significantly.

Since Chen assumed leadership, the hospital has not only covered its 2017 deficit of NT$12 million but has also seen increasing surpluses. By 2021, it ranked ninth among Taiwan's most profitable hospitals. The hospital has also demonstrated its financial strength by investing NT$6 billion in a new proton therapy building, funded entirely through its own cash reserves rather than large-scale financing.

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The hospital's net profit in 2017 was negative.

This year, hospital staff will receive a record-breaking 3.5 months of year-end bonuses, the highest in the hospital's 130-year history. The hospital's financial turnaround highlights the impact of leadership decisions, especially during challenging times like the 2021 pandemic. The hospital's procurement process has also been reformed, with an independent committee now making decisions, removing the hospital president from direct involvement.

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The hospital's year-end bonus this year reached 3.5 months, a new high in 130 years.