Angers University Hospital Faces €9 Million Deficit, Seeks Efficiency Gains

The Angers University Hospital (CHU) in France reported a roughly €9 million deficit in 2024, despite an overall budget of €800 million, according to a statement released Friday, July 4, 2025. The financial challenges are prompting hospital leadership to explore strategies for improved revenue generation adn cost control.

2024 Financial Performance and Underlying Issues

The €9 million deficit represents a significant increase from the less than €3 million shortfall recorded in 2023. Hospital officials initially projected a deficit between €8 and €10 million earlier in the year, a forecast that proved largely accurate. A senior official explained that discrepancies between initial projections and final validated figures are common due to evolving budgetary allocations from the state.

Contributing to the financial strain was a lack of anticipated state funding. “This year,due to the budgetary context,there was no thaw by the State,and therefore no good surprise for hospitals,” a hospital spokesperson stated. In June, €29.6 billion in allocations were distributed to health establishments, but this did not include the expected release of previously reserved credits. Several federations had warned in December 2024 of the possibility of these credits remaining frozen.

Did you know?-French hospitals often face budgetary constraints due to the country’s worldwide healthcare system, which aims to provide affordable care for all citizens. This can lead to arduous decisions regarding resource allocation.

Addressing Revenue Shortfalls: Coding and Length of Stay

Hospital administrators have identified sub-coding – an underreporting of services provided – as a key area for improvement,estimating potential lost revenue between €15 and €20 million. This figure,however,is described as a “statistical evaluation” and difficult to precisely quantify.

“If we just returned to the average of the CHU in France for the quality of the valuation of our activity, we would complete our deficit,” argued Christophe Verny, president of the CHU’s medical commission. To address this, the hospital plans to invest in training for medical staff to improve the accuracy of service coding.

Reader question:-How might improved technology, such as AI-powered coding assistance, help hospitals reduce revenue loss from sub-coding? What are the potential drawbacks of relying on such technology?

Alongside improved coding, the CHU is also focused on reducing the average length of patient stays, particularly within medical care and rehabilitation (SMR) units.One official noted that patients “tend to stay a little too long, not because doctors keep them more time to treat them, but because we have a little difficulty in downstream beds.” Long-term solutions are being pursued both within the hospital and across the broader territorial hospital group (GHT).

Bed Management and Summer Operations

To optimize bed availability, the CHU is implementing new bed management software across the GHT, providing real-time visibility into bed capacity at all affiliated facilities, including private hospitals. This initiative is expected to streamline patient flow and reduce delays.

Pro tip:-Effective bed management systems can significantly improve hospital efficiency by reducing patient wait times and optimizing resource allocation. This frequently enough involves collaboration between different departments and facilities.

The hospital is also adapting its operations for the summer months, adjusting the number of open beds to balance patient care with staff vacation requests. During the peak summer period, 463 of 597 medicine beds will remain open, alongside 80% of surgical beds and 100 of 120 SMR beds. A limited number of gynecology beds will be temporarily closed from July 14 to August 24. Some services,such as geriatrics and neurosurgery,will operate on a 12-hour schedule during weekends.

Emergency Services and Regional Support

Despite the internal challenges, hospital leadership expressed confidence in maintaining adequate emergency services throughout the summer. The emergency department currently handles an average of 160 adult cases and 40 pediatric cases daily.The hospital continues to emphasize the importance of calling number 15 before seeking emergency care.

The Angers university Hospital is also providing support to neighboring Mayenne, which is facing a critical shortage of emergency physicians. the Angevin hospital, along with facilities in Rennes and Le Mans, has committed to providing one emergency doctor per week to Mayenne. While current support levels will remain consistent throughout the summer,officials anticipate increased recruitment efforts will allow for expanded assistance starting in the fall.

The Impact of Funding Shortfalls on Hospital Staff and Services

The financial woes confronting the Angers University Hospital (CHU) have a ripple effect, impacting not only the bottom line but also the hospital’s ability to provide services and support its staff.As documented in the initial report, the hospital’s €9 million deficit reflects broader pressures on the French healthcare system. These pressures necessitate a closer look at the practical consequences and potential solutions.

One of the immediate concerns is staffing. The hospital’s efforts to improve staffing levels and maintain adequate emergency services, are directly impacted by budget constraints. Reduced funding can hinder recruitment efforts and impact the compensation and benefits offered to existing employees, especially in high-demand areas like emergency medicine. As the CHU supports Mayenne with emergency doctors, this added burden highlights the strain on the region’s healthcare professionals.

Expert insight:-Hospital deficits often led to cuts in non-essential services, potentially affecting patient care and outcomes. Maintaining sufficient staffing ratios is essential for ensuring patient safety and quality of care.

Beyond staffing, the deficit can also influence the availability and quality of services. Hospitals might postpone equipment upgrades, limit the types of procedures offered, or reduce investments in new technologies. This can lead to longer wait times for patients and potentially affect the overall patient experience. Such cutbacks are, though, rarely uniform. As noted in the report regarding summer staffing, hospital leaders attempt to balance service needs with the constraints of budget and employee availability.

The decisions made to mitigate financial difficulties, such as the temporary closure of gynecology beds, underscore the need for arduous choices.The hospital’s commitment to maintaining emergency services, despite the challenges, emphasizes the critical nature of these departments. The Angers University Hospital faces the same pressures as many other hospitals.

Strategies for Navigating Financial Hardships

To navigate these financial headwinds, hospital administrators are using a multifaceted approach, striving for greater efficiency and exploring alternative revenue streams to provide high-quality care.

Enhanced Coding: Staff training to improve the accuracy of medical service coding is crucial, as described earlier.
optimized Bed Management: Implementing advanced bed management software promotes efficient patient flow, as noted in the report.
Collaboration and Resource Sharing: The CHU’s support of Mayenne’s emergency services exemplifies regional cooperation.
care Pathway Simplification: Minimizing patient stays and focusing on efficient patient handling reduces costs.

The hospital’s leaders must also focus on improving interaction, both internally with staff and externally with patients and the community. Transparency regarding financial challenges and implemented strategies can nurture trust and encourage support. building strong relationships with patient advocacy groups and local government is also essential. Open dialogue and collaboration can assist in finding solutions that protect patients and maintain a high standard of care.

What is the most crucial step in overcoming hospital deficits? improving coding practices helps hospitals accurately reflect the services they provide, ensuring proper reimbursement. How can hospitals balance financial constraints with quality of care? It requires careful resource allocation, operational efficiency, and, where possible, seeking additional funding to maintain standards.

The Future of Healthcare Finance: Considerations for Angers and Beyond

The challenges faced by the Angers University Hospital are not unique to France. Healthcare systems globally are under pressure from rising costs, aging populations, and evolving medical technologies.Addressing these long-term challenges will necessitate innovative approaches to funding, service delivery, and resource management.

One key area of action is preventive medicine. The creation of a healthier population reduces the demand for expensive hospital services. Public health initiatives, education campaigns, and incentives for healthy lifestyles are crucial investments. Telemedicine and remote patient monitoring can enhance access to care, particularly for patients in rural or underserved regions, which can greatly affect staffing needs.

Did you know?-the shift toward value-based healthcare, which rewards providers for patient outcomes rather than the volume of services, could help to align financial incentives with quality of care.

Another critical innovation is leveraging data analytics and artificial intelligence. Analyzing patient data can help identify areas of waste or inefficiency, optimizing the allocation of resources, and personalizing patient care. The initial report referenced AI-powered coding; however, a data-driven approach can extend far further.

The Angers University Hospital, and all providers, must continue analyzing outcomes and costs. By proactively addressing revenue shortfalls and adapting to the changing healthcare landscape,the CHU can improve the quality of health outcomes.

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