CUHK Medical Centre proposes early repayment of $4.03b govt loan

The Health Bureau announced on Friday that the Chinese University of Hong Kong (CUHK) Medical Centre has formally proposed to fully repay its HK$4.033 billion government loan ahead of schedule. 

The government has in principle agreed to the proposal, setting the target repayment date for March 19 next year.

Under the agreement, the hospital will continue to fulfill its land grant and service contracts, and will still provide public medical services to offset the interest generated during the original loan deferral period. 

The university plans to secure the repayment funds by tapping into unallocated portions of its CUHK dedicated fund, which saw strong investment returns between 2024 and 2025.

A 'triple-win' interest arrangement

Lawmakers raised questions regarding the hospital’s sudden financial turnaround and the mechanism of using medical services to pay off interest over a 15-year period.

Insurance sector lawmaker Chan Pui-leung questioned how unmet service quotas would be managed, while Election Committee lawmaker Rebecca Chan Hoi-yan asked why only the principal was being repaid. 

The Health Bureau explained that offsetting interest with services creates a "triple-win" scenario: it alleviates financial pressure on the hospital, allows Hospital Authority patients to receive faster care, and enables citizens to access private hospital services at public rates.

The bureau added that if the quota targets—which can include outpatient and imaging services—are not met, the hospital could pay the equivalent cash value, subject to government review.

University expresses long-term confidence

CUHK Council Chairman John Chai Yat-chiu emphasized that the decision was not a sudden pivot, noting that the university had already committed to exploring various financing options, including university reserves, when addressing its projected 2028 funding gap last year. 

He stated that the government's previous permission to defer loan payments during the pandemic gave the hospital valuable time to stabilize its operations and governance. 

Chai highlighted that utilizing the university’s dedicated fund to loan money to the hospital is a carefully considered move supported by the Council, demonstrating absolute optimism regarding the hospital's future development. 

Moving forward, the government will draft a Memorandum of Understanding with CUHK, the hospital, and the Hospital Authority to solidify its role as a bridge between the public and private healthcare sectors.

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