Pulling the plug on the privatization decree

Public benefit associations can establish private law firms themselves. Of this, external financiers and companies can buy up to 49% of the shares. As in the UK, this threatens to create business models in which the profits of the financial players are primary, not the recipients of the sponsorship.

Increase the size of Zorgbedrijf Antwerp

It is no secret that the Flemish privatization decree Designed specifically for Antwerp City Council Which significantly saves on the public welfare association Zorgbedrijf Antwerpen. The grant to the healthcare company will drop from €39.3 million in 2020 to €28.7 million in 2025. Private funding should provide consolation. How do? To discontinue healthcare real estate in a public joint stock company and sell 25% + 1 of the company’s shares.

In addition, they also want to transfer their service checking and meal preparation activities to two private limited companies, with private equity contributions as well. There will be a not-for-profit association under private law to operate (and employees of), among others, residential care centers, assisted living apartments and youth care. This opens the door to highly opaque and opaque constructions in which the boundaries between public and private are deliberately blurred.

The privatization decree will further stimulate healthcare financing

Discussions are ongoing with a consortium consisting of the finance company on private sector participation in healthcare real estate PMVHome commercial break operator Vulbia The health care real estate fund aedifica. With 25% + 1 of the shares, this consortium will have – not unimportantly – a minority of opposition in the area of ​​amending the articles of association and a change in the subject and purpose of the company.

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Just like the like cofenimo employment property care investment Aedifica acquires health care real estate (such as residential care centers) that it leases to government-backed, commercial, and private health care groups. In Flanders, 107 residential and commercial care centers are linked to these three health care estate funds together 250 million euros in subsidies. De Morgen recently calculated that €93 million in rent is lost to landlords each year.

This practice Sale and rent back Thus it feeds the logic of extractive profit that accompanies it in actual residential care centers High prices during the day and staffing that threatens quality. Staff and caretakers at Zorgbedrijf Antwerpen will also experience this. After all, the nonprofit for the sponsorship process will, as usual, pay the real estate company a high rent. Additionally, private investors will also want to sell some buildings (Origin stripping) to increase the real estate company’s profits (and its distributions).

It is important to know that the three Care subsidiaries are allowed to develop ‘support and facilities services’ anywhere in Flanders. They will also be able to acquire interests in current or future companies. In this way, a very complex structure can arise around Zorgbedrijf Antwerpen with many subsidiaries.

Zorgbedrijf Antwerpen aims to increase the range of its services by acquiring and operating residential care centers and living apartments – even more so than is the case today. The healthcare company will follow the path of large commercial healthcare concerns trying to make profits through economies of scale (and savings on employees) in order to be able to pay shareholders and healthcare real estate funds.

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In this regard, the privatization decree will contribute to welfare associations that – in the words of the umbrella business welfare organization – VLOZO – “boring for private companies”. It is clear that the spirit of public service will be replaced as a result. It’s not the population, it’s the contributors that take center stage.

From the beginning, the marketing of the Flemish care sector has been accompanied by profit and expansion opportunities for financial actors. Privatization decree will be issued Finance Further strengthening of health care.

Modern financial technology based on the British model

In this respect, the Flemish care sector is increasingly beginning to resemble the health care sector United kingdom to appear. Commercial healthcare chains – often in the hands private equityCompanies – They run 64% of all nursing homes and have 71% of all households in their portfolio.

Commercial healthcare chains shift their profits to tax havens

The structures of these concerns are complex. They often count hundreds of separate companies grouped into purely financial holding companies. These chain-of-care companies often take out loans from each other to pay lower taxes. After all, interest payments on debt are tax deductible.

The feature is also Sale and rent back-makeover With separate companies for operational services on the one hand and the real estate portfolio on the other. What’s called Triple net leaseThe agreements – also standard in the Belgian healthcare real estate sector – mean that the tenant bears the costs of property tax, insurance and maintenance. That’s how I paid Care United kingdom 4.1 million pounds rent last year silver for free collectibles, a real estate company, like Care UK, is owned by Americans Bridgepoint.

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It is important to know that commercial healthcare chains shift their profits to tax havens. For example, Silver Sea Holdings is based in the Grand Duchy of Luxembourg.

Megan Vasquez

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