University hospital in Hong Kong seeks more time to repay HK$4 billion loan

Lawmakers have cast doubt on whether a private hospital run by the Chinese University of Hong Kong (CUHK) can start repaying a government loan of HK$4 billion (US$513 million) in three years as projected, urging the institution to review its financial forecasts.

However, members of the Legislative Council’s health services panel on Friday agreed to support a three-year extension of the CUHK Medical Centre’s repayment plan. An earlier two-year extension granted by Legco’s Finance Committee in February 2023 expires on March 19.

The three-year extension, which will push the final of 10 annual repayments back to 2037, will need to be discussed by the Finance Committee for approval.

The three-year-old hospital in Sha Tin recorded a loss of about HK$316 million in 2023-24, which was higher than an original projection of HK$202 million. As of June 30 last year, it had cash of around HK$286 million, lower than an initial forecast of HK$336 million.

Lawmaker Michael Tien Puk-sun suggested postponing the extension by six months while considering obtaining another forecast in August based on the profit situation.

“Your forecast was quite ridiculous and has left people with the impression that it is just child’s play,” he told university chiefs.