The Ministry of Public Health is stepping in to address a deepening financial crisis at Khon Kaen Hospital, which is facing accumulated losses of more than 1.2 billion baht.
The ministry is considering an emergency loan of over 300 million baht from the National Health Security Office (NHSO) as a short-term solution while it works on a broader financial recovery plan, says Public Health Minister Somsak Thepsuthin.
Mr Somsak visited the hospital in the northeastern province on Saturday.
He chaired a meeting to assess the situation and review the hospital's financial rehabilitation plan with Inspector-General for Health Region 7, Dr Ekachai Piansriwatchara, and Director of Khon Kaen Hospital, Dr Surasit Chitpitaklert.
"Khon Kaen Hospital began experiencing liquidity problems in 2021. The accumulated deficit has now exceeded 1.2 billion baht," Mr Somsak said.
"This reflects structural issues in budget allocation and hospital management at the provincial level. If not urgently addressed, the impact on public health services could be widespread."
The ministry would request a 300-million-baht loan from the NHSO to prevent disruption to care. "This is an emergency measure to improve short-term liquidity," said Mr Somsak.
In parallel, the Office of Public Sector Anti-Corruption Commission (PACC) and the State Audit Office (SAO) would audit the hospital's operations to ensure transparency and efficient budget use.
"Revenue collection has underperformed due to inefficiencies, and the hospital receives fewer patients under the civil servant medical scheme compared to other hospitals of similar size," Mr Somsak said. "At the same time, operating costs -- particularly wages -- are higher, and there has been insufficient internal financial control."
The ministry has outlined a seven-point recovery plan. Measures include revising the hospital's revenue-expenditure balance, boosting income by more than 10%, and cutting procurement costs by at least 20%.
The hospital will also accelerate debt collection from regional service units and seek further support from central authorities, he added.