Luther advises Stadtkrankenhaus Delmenhorst on an employee participation plan that has received nationwide attention

The Council of Delmenhorst decided at the end of March 2021 that the employees of Josef Hospital should participate in the financial success of the hospital. The first EUR 300,000 of the pre-tax profit is to be distributed in full to the employees. After that, there will be a graduation. The maximum amount is EUR 750,000, which would correspond to about 1.5 per cent of the total payroll. Doctors, nurses and employees from other divisions who hold a full-time position are to each receive EUR 500 tax-free. That amount would be reduced accordingly for part-time positions.

Stadtkrankenhaus Delmenhorst GmbH is breaking new ground in the hospital market with its employee participation plan. According to Axel Jahnz, Mayor of Delmenhorst and Chairman of the Supervisory Board of the hospital, which is operated by the Town of Delmenhorst, this is possible because the hospital is in a good financial position for the first time in years. Jahnz said that it was primarily thanks to the employees’ commitment that the financial situation stabilised to such an extent in the last two and a half years. However, the audit of the annual financial statements is still pending. For the current year, lower revenues are expected due to the coronavirus crisis, which makes a profit-sharing payment unlikely.

In 2017, Josef Hospital posted an operating loss of more than EUR 10 million and had to file for insolvency. The Town of Delmenhorst then took over the hospital with the support of a team led by Dr Oliver Kairies and Dr Hendrik Sehy, both from Luther Rechtsanwaltsgesellschaft, who specialise in distressed hospital transactions, and set out to rigorously reorganise the hospital.

About Stadtkrankenhaus Delmenhorst GmbH

Since 2015, the Delmenhorst Josef Hospital has united the former hospitals “Klinikum Delmenhorst” and “St. Josef-Stift Delmenhorst”. As a result of the takeover by the Town of Delmenhorst and in the course of extensive restructuring, the operating company Stadtkrankenhaus Delmenhorst GmbH has now taken on the task of developing a sustainable hospital. With a total of 340 beds and around 830 employees, the hospital forms an integral part of the inpatient care system in Delmenhorst.

On behalf of Stadtkrankenhaus Delmenhorst GmbH:

Luther, Corporate/M&A: Dr Oliver Kairies (Lead Partner), Dr Daniel Schubmann (Counsel)

Luther, Hospital Law: Dr Hendrik Bernd Sehy (Counsel)

Luther, Employment Law: Dr Hilmar Rölz (Senior Associate)

Luther, Tax Law: Jens Röhrbein (Partner)