Hospital resists City’s peppercorn rent fix | E15.cz

Hospital resists City’s peppercorn rent fix

Hospital resists City’s peppercorn rent fix
22. září 2016 • 12:02
Prague City Hall is pushing on with its plan to drastically raise the rent of Na Bulovce Hospital. The hospital still remains in the position of paying a symbolic 10 thousand crowns annually for its land and buildings, but the city government wants to crank that up to tens of millions of crowns.

Last week it presented the first draft of a new deal which it wants signed this autumn. “I believe that by autumn we can succeed in straightening out this warped tenancy arrangement,” said councillor Radek Lacko (ANO). That might sound simple, but it’s not. “Bulovka” is in no hurry to sign. It is reminding interested parties how the majority of the hospital’s buildings are in a bad condition and need City Hall investment.

“The idea that the hospital would in two months approve this document, which according to the intentions of the City involves a payment of 875 million crowns over 25 years, is illusory. Especially because the hospital still has different ideas about basic points of the contract,” said Bulovka spokesman Martin Šalek. Prague owns around three-quarters of the Prague 8 hospital’s grounds and premises, but Bulovka comes under the health ministry.

As well as not seeing eye to eye over the height of the rent, the two parties do not agree on the envisaged contractual duration. The hospital has been offered 15 years with an option for 10 years less, but with a view to achieving better forward planning it would like to extend the deal to 99 years. Until recently, as far as its financial management was concerned, Bulovka was one of the worst state hospitals. But in 2014 it received a state subsidy of CZK 200m, and it has stayed in the black since then.

“The investment request on the part of the hospital to City Hall exceeds 600 million crowns and requests for repairs this year and next year go beyond 50 million. A complete reconstruction is needed for the surgery pavilion, we’ve asked for the building of a social facility to cover each room and we need a central parking place,” hospital director Andrea Vrbovská told E15.

 

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