Hospitals account for over half of losses in Azores public enterprises

The Azores' three regional hospitals account for around 58% of the €55.7 million loss reported in the regional public enterprise sector's first-half accounts. Their combined losses reached €32.3 million, making healthcare central to understanding the figures reported by Açoriano Oriental on 13 October.

The accounts cover 19 entities, nine of which recorded negative net results. Losses therefore affected almost half of the organisations reviewed rather than every entity in the sector. The overall figure needs to be distinguished from the financial position of each individual enterprise.

The hospitals' share of the losses gives these figures particular relevance for Azorean residents who rely on public healthcare. The concentration across the three hospitals means their accounts are an essential part of assessing the regional public enterprise sector. These totals alone, however, do not establish what caused the losses.

For the Azores' public finances, the half-year results provide an indicator to monitor when assessing public entities. An accounting loss does not automatically amount to debt or establish a funding requirement of the same size. These are also interim figures: performance in the second half will be needed to establish the result for the full financial year.