CUHK Medical Centre’s Early Debt Repayment Plan for HK$4B Government Loan

CUHK Medical Centre Seeks Early Repayment of HK$4 Billion Government Loan Amid Financial Struggles

The Chinese University of Hong Kong (CUHK) Medical Centre (CUHKMC) has proposed repaying its HK$4.033 billion government loan ahead of schedule, despite ongoing financial losses and previous extensions to its repayment timeline. The hospital, which has struggled to achieve sustained profitability since its opening, aims to clear the debt by March 2027—one year earlier than the current deadline—through a combination of internal borrowing and bank guarantees, according to statements from CUHK and government officials.

Loan Background and Repayment Extensions

The Hong Kong government provided the HK$4.033 billion loan to CUHK Medical Centre Limited in 2015 to support the development of the private hospital in Sha Tin. The loan was structured as 10 annual repayments, with the first installment originally due in 2028. However, the repayment schedule has been extended twice: first in February 2023, when the Finance Committee of the Legislative Council (Legco) granted a two-year delay, and again in February 2025, when lawmakers approved a three-year extension, pushing the final repayment to 2037.

The latest extension was approved despite skepticism from lawmakers, who questioned the hospital’s ability to meet its financial projections. CUHKMC reported a loss of HK$316 million for the 2023-24 financial year, exceeding its original projection of HK$202 million. As of June 30, 2025, the hospital’s cash reserves stood at HK$286 million, below the forecasted HK$336 million.

Financial Performance and Lawmaker Concerns

In a February 2025 Legco hearing, lawmakers raised doubts about CUHKMC’s financial stability. Michael Tien Puk-sun, a Legco member, criticized the hospital’s forecasting accuracy, stating, Your forecast was quite ridiculous and has left people with the impression that We see just child’s play. Tien suggested delaying the extension by six months to reassess the hospital’s profit situation in August 2025.

Government records show that CUHKMC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of the 2024-25 financial year was a loss of HK$77 million. The hospital had projected a full-year EBITDA loss of HK$54 million, implying a second-half profit of HK$23 million. However, the actual figures for the second half have not been publicly confirmed, and discrepancies between projections and performance remain a concern.

Despite these challenges, CUHKMC’s CEO reportedly told media in late 2025 that the hospital achieved its first monthly breakeven in November of that year. However, the government has not released official figures for revenue, operating costs, or EBITDA for November or December 2025, nor has it compared these figures to the same period in 2024.

Proposal for Early Repayment

In April 2026, CUHKMC submitted a proposal to the government to repay the remaining loan balance by March 19, 2027—one year before the current deadline. The hospital suggested two options to secure the funds: either CUHK would borrow the amount internally or provide a bank guarantee to cover the repayment. The proposal was discussed in Legco, where lawmakers expressed cautious support but emphasized the need for transparency in the hospital’s financial planning.

A government spokesperson confirmed that the proposal is under review but did not provide details on potential contingency plans if CUHKMC fails to meet the new timeline. The spokesperson noted that the government remains committed to ensuring the hospital’s long-term viability while protecting public funds.

Broader Implications for Hong Kong’s Healthcare Sector

The financial struggles of CUHKMC highlight the challenges faced by private hospitals in Hong Kong, particularly those with significant public funding. The hospital, which opened in 2021, was intended to provide high-quality private healthcare services while easing pressure on the public system. However, its inability to achieve consistent profitability has raised questions about the sustainability of such models.

Lawmakers have urged CUHK to conduct a thorough review of its financial forecasts and operational strategies. The government has also indicated that it may impose stricter oversight on future loan agreements with private healthcare providers to prevent similar situations.

Next Steps

The Finance Committee of Legco is expected to discuss CUHKMC’s proposal in the coming weeks. If approved, the hospital will be required to submit a detailed repayment plan, including proof of funding sources. The government has not ruled out further extensions if the hospital’s financial situation deteriorates, but officials have stressed the importance of accountability and fiscal responsibility.

For now, CUHKMC remains focused on stabilizing its operations and meeting its revised repayment targets. The outcome of this proposal could set a precedent for how the government handles similar cases in the future, particularly as Hong Kong continues to expand its private healthcare infrastructure.