KZN dept's offer for McCord hospital too low

2013-09-21 08:09

(File) (Shutterstock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Durban - The KwaZulu-Natal health department's offer to buy the 104-year old McCord Hospital in Durban was far too low, the board said on Friday.

The board had agreed to discount the Independent valuation of the property by more than 40% in order to try and find a solution with the department.

"Unfortunately, the DOH's [health department] offer, in terms of the financial consideration for the properties was far less than this amount."

Despite the closure the staff would remain employed until their retrenchment was finalised.

Annual subsidy not renewed

Earlier this week, the board said the facility would close on Friday after a breakdown in talks about the KwaZulu-Natal health department taking over the hospital.

Earlier this year, the hospital was slated for closure after the department opted not to renew its annual subsidy.

At the end of January, health MEC Sibongiseni Dhlomo announced that the department had made an offer to take over the hospital.

The board said the department's offer not only failed to reach the discounted value of the hospital's assets, it failed to adequately relieve the hospital board of its obligations, including existing and future claims that might be made against the board.

No option but to close hospital

"Unfortunately the decrease and ultimately cessation of the subsidy from the DOH, coupled with the loss of funding from the US Presidents Emergency Plan for Aids Relief, amongst others, have left us no option but to cease operations," the board's spokesperson and business manager Gerard Ronan was quoted as saying.

"The possibility exists that there would be inadequate cover for future claims and liabilities against the company which have been estimated at between R50m and R100m.

"There are also the companies' obligations to the staff and creditors that might not be adequately covered, and thus potentially exposing the directors to personal financial risk," he said.

Provincial health spokesperson Sam Mkhwanazi said on Thursday the department would comment on the hospital's closure in due course.

Unions and opposition parties have called on the board and the department to keep the hospital open.
Read more on:    sibongiseni dhlomo  |  durban  |  health

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Financial advisors – Do you need one and should you get one?

The good, the bad, and everything else you need to know when considering hiring a financial advisor.


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.