Amphia Hospital, Netherlands
New, state-of-the art hospital replacing outdated, scattered facilities: improving patient care for an ageing population.
Total project cost: EUR 400 million; EIB loan: up to EUR 100 million, EFSI-backed.
Amphia, is a regional hospital in the province of Noord-Brabant, in Southern Netherlands. The project aims at regrouping all core services on a single site, leading to improved patient accommodation, cost savings, higher quality care provision and service benefits. It is an essential step in the development of Amphia’s main focus areas: cardiology, oncology, obstetrics, paediatrics, orthopaedics and healthy ageing. All 711 beds in the new facility will be in single rooms and the promoter will also renovate and adapt existing buildings to meet local needs. The natural catchment area of the hospital has a population of some 400 000, whose other options are limited.
Since 2006, the structure of the Dutch healthcare sector has seen substantial changes, with the introduction of managed competition between service providers. The effects of the changes are still unfolding and there is a degree of uncertainty as operators establish their role within the marketplace. The development of the new hospital has therefore been partly driven by the need to maintain its strong position in a competitive market on the one hand and, on the other, the desire to further develop its top clinical specialisations. The services proposed by the hospital are well matched to the needs of the country’s ageing population.
However, like private companies, hospitals must seek new sources of financing for capital investments. For the Amphia project, a large part of the financing will come from a consortium of three private banks, at commercial interest rates and, more importantly, with a term over a limited number of years and subject to refinancing. This presents challenges for the hospital group, as it is more beneficial to access finance in line with the lifetime of the assets. Thanks to the availability of an EFSI guarantee, the EIB has been able to offer longer-term financing than was otherwise available, giving the hospital repayment terms in line with asset life and long-term financial stability.