Offenbach-based hospital operator Ketteler Krankenhaus gemeinnützige GmbH to restructure itself for the future as a debtor in possession

Ketteler Krankenhaus gemeinnützige GmbH has initiated in-court restructuring proceedings as a debtor in possession to equip itself for the future. The aim of the proceedings is to ensure the hospital’s long-term financial stability and sustainably improve the provision of medical services in Offenbach. The Local Court of Offenbach has approved the application and ordered provisional debtor-in-possession proceedings.

As a debtor in possession, the company will be able to carry out the necessary restructuring steps independently with professional guidance. Restructuring experts Mr Philip Konen and Dr Christian Kaufmann from PLUTA Rechtsanwalts GmbH will support management with this in their capacity as general agents for the hospital. The PLUTA team further comprises attorneys Mr Philipp Meyer, Mr Sebastian Weyland and Mr Alexander Bortfeldt. Business management expert Mr Ludwig Stern and business lawyer Ms Celine Plaschke from PLUTA Management GmbH will also provide support. The court has appointed attorney Dr Lason Gutsche from law firm HGW Rechtsanwälte as provisional insolvency monitor. He will oversee the proceedings in the interests of the creditors.

Patient care ensured

“Patient care will be ensured at every stage of these proceedings. All of the hospital’s departments are continuing to function and all courses of treatment and operations are going ahead as usual. The emergency department is also still open,” said managing director Ms Angelika Heckenthaler. “We are using the proceedings to put the hospital on a secure footing for the future.” The aim is to stabilise the hospital’s financial structure and establish a sustainable way forward. Direct measures have already been initiated with this in mind, and experienced manager and restructuring expert Mr Dietmar Eine has joined the management team. Mr Dietmar Eine is hospital management director at Hospital Management Group GmbH. Having made an initial assessment, he believes Ketteler Krankenhaus gemeinnützige GmbH is very well positioned in structural terms and has long-term viability.

Management has informed the more than 900 employees about the current situation. Their wages and salaries are protected for the long term thanks to, among other things, specific substitute benefits provided under German insolvency law.

The Ketteler hospital has been operating for a long time. From its beginnings in outpatient care, the Krankenhaus Josefsheim hospital was established in 1905. This was replaced by a new facility on Lichtenplattenweg in 1958. Today, Ketteler Krankenhaus gemeinnützige GmbH runs a modern hospital that specialises in providing surgical, internal medicine, gynaecological, obstetrics and geriatric care. The hospital is part of a care network for the Frankfurt/Offenbach region. It holds KTQ (Cooperation for Transparency and Quality in Healthcare) certification and has been awarded the German Palliative Seal. It also acts as a teaching hospital for Goethe University Frankfurt. The hospital has 310 beds.

The non-profit company also runs a hospice funded through daily care fees and donations. All money donated to the hospice is used exclusively for that purpose. Donors can therefore rest assured that their donations will continue to directly benefit the hospice.

Structural challenges in healthcare

The company finds itself in its present position due to the increasing financial burden faced by many hospitals in Germany at this time. The inadequate funding structure in the German healthcare system, combined with rising personnel and material costs, has placed significant financial pressure on hospital operators, including Ketteler Krankenhaus gemeinnützige GmbH.

The hospital will now reposition itself structurally and financially to address these negative and far-reaching developments. Through debtor-in-possession management, the hospital intends to stabilise its finances and further develop its range of medical services in a targeted manner.

PLUTA attorney Mr Philip Konen said, “The hospital has an important regional function and dedicated staff supporting patients day after day. With this solid base, we want to work together to steer the hospital towards a stable future.”

Provisional insolvency monitor Dr Lason Gutsche added, “Hospitals are operating in a challenging environment at this time. It is therefore all the more important that we safeguard those with a regional function. This is the clear aim for the future of Ketteler Krankenhaus gemeinnützige GmbH. I will provide constructive support to the proceedings over the coming months in the interests of the creditors.”