Section 5: Financial imbalance

The Director General of the Regional Health Agency asks the Director of a public health institution to present a recovery plan in application of Article L. 6143-3 when he considers that the financial situation so requires, or when one or more of the following criteria for financial imbalance are met:

1° For establishments whose total income from the main profit and loss account exceeds ten million euros, the main profit and loss account shows a deficit greater than the threshold determined in this article. This accounting result is calculated as the difference between income and expenses in the main income statement and is adjusted for expenses and income from previous financial years booked during the current financial year, after verifying the accuracy of the entries for expenses and income.

The threshold provided for in this 1° is set at :

a) 2% of total income from the main profit and loss account for the financial year, for the public health institutions referred to in Article D. 6141-15 and those whose directors are functional posts in the hospital civil service pursuant to 4° of Article 1 of Decree No. 2005-922 of 2 August 2005 ;

b) 3% of total income from the main profit and loss account for the financial year, for other public health establishments;

2° For establishments whose total income from the main income statement exceeds ten million euros, the main income statement shows a deficit, calculated in accordance with the conditions set out in 1°, and either the establishment's self-financing capacity, determined in accordance with the conditions set out in the decree mentioned in article R. 6145-10 , represents less than 2% of the establishment's total income from all activities, or the establishment has a self-financing shortfall;

3° The establishment's self-financing capacity is insufficient to cover the contractual capital repayment of the loans shown in the financing table mentioned in article R. 6145-13. The contractual capital repayment does not take into account early capital repayments.

Examination of the institution's situation with regard to the criteria mentioned in 1°, 2° and 3° of this article is carried out on the basis of the most recent of the following documents:

a) Either the most recent comparative statement for the previous financial year, drawn up in application of article R. 6145-6 ; in this case, the elements used to establish the value of the criteria mentioned above are taken from the updated annual projection, included in the comparative statement sent by the institution in application of the order mentioned in article R. 6145-6 ;

b) Or the financial account for the last financial year for which the accounts have been closed, as referred to in article R. 6145-43.