SMMC
CAY HILL--St. Maarten Medical Center (SMMC) recorded a consolidated surplus of Cg.11.8 million in 2025, marking the second consecutive year it has achieved a double-digit million surplus, while combined turnover increased 8.2% to Cg 138.9 million, exceeding budget expectations, according to the hospital's 2025 Annual Report.
The Board of Directors said the Foundation St. Maarten General Hospital (SMGH), operating as SMMC together with its wholly owned subsidiary St. Maarten Medical Center Pharmacy NV (CHP), remained focused on providing accessible, high-quality, patient-centred healthcare while simultaneously preparing for the transition to the new hospital.
Financially, the organisation continued to outperform expectations. Combined net turnover increased from Cg 128.4 million in 2024 to Cg 138.9 million in 2025, while the combined gross margin rose from Cg 100.0 million to Cg 107.7 million.
SMMC's own revenue reached Cg 126.3 million, exceeding its budget of Cg 122.6 million by Cg 3.7 million. According to the report, revenue remained close to budget for most of the year before exceeding projections during the final quarter, driven by stronger inpatient clinic activity and higher emergency room attendance.
The hospital recorded an operating result of Cg 12.5 million, compared with Cg 13.1 million in 2024.
Although the consolidated surplus declined slightly from Cg 12.7 million in 2024 to Cg 11.8 million in 2025, the Board said the result reflected continued growth in clinical services that was partly offset by higher personnel expenses and operating costs. Bad debt provisioning remained stable at 7% of revenue.
The Board said, however, that the surplus should be viewed within the broader context of financing the new hospital.
Beyond funding already secured through the World Bank grant and consortium loan, SMGH must contribute significant equity to the project. As construction accelerates and lender drawdowns continue, the demand on the organisation's cash reserves is expected to increase.
For that reason, SMMC maintained a strong focus throughout the year on collections, payer coordination and revenue cycle optimisation to ensure reserves remain liquid and available to support the project.
The report also noted that inpatient services remained the hospital's largest revenue source, accounting for 48% of total hospital revenue.
Emergency care, outpatient services and clinic activity all recorded growth compared with the previous year, increasing by up to 10.2%, 2.9% and 13.7%, respectively, contributing to the overall increase in turnover.
Operating expenses increased from Cg 86.9 million in 2024 to Cg 95.2 million in 2025, reflecting continued investment in personnel, infrastructure and operational readiness.
Personnel costs rose 14.2% to Cg 66.1 million, making them the hospital's largest expense category and increasing from 45% to 48% of total revenue. The increase was attributed to salary adjustments, pension-related costs and continued workforce investments.
Housing expenses increased to Cg 9.4 million due to higher maintenance and utility costs, while office expenses rose modestly because of increased information technology maintenance costs.
Meanwhile, depreciation of tangible assets declined to Cg 3.9 million from Cg 7.0 million the previous year as accelerated depreciation on essential upgrade assets eased following the extension of the new hospital's construction timeline.
According to the report, 2025 represented a significant shift from planning to execution as work progressed on both the physical construction of the new hospital and strengthening the organisation's people, culture and systems.
With the new SMGH visibly taking shape in Cay Hill and a planned move into the facility during the second half of 2027, the Board said 2025 was the year the organisation truly began operating as "a hospital in transition."
Progress was made in construction milestones, transition workgroups, Joint Commission International (JCI)-aligned policies, leadership development and a redesigned onboarding programme, while patient care continued uninterrupted at the existing hospital.
The hospital also continued investing in infrastructure, clinical services and its workforce to support future growth.
Following repair work earlier in the year, the new operating room complex returned to full service. SMMC also installed a new C-arm imaging system for surgical services and completed preventive maintenance on all operating theatres.
Several clinical services expanded during the year. Emergency care generated Cg 10.6 million in revenue, compared with Cg. 9.6 million in 2024. Haematology, nephrology and dialysis services were expanded, including the introduction of peritoneal dialysis, which allows patients to receive dialysis treatment at home, providing greater flexibility in their care.
In November 2025, SMMC also launched its Pain Points Study in collaboration with the Pain Management and Anaesthesiology Clinics. The study is tracking 325 post-operative patients through August 2026.
The report also highlighted the introduction of a new vitreoretinal (VR) surgical service within the Ophthalmology Department. Equipment installation and commissioning of the service are scheduled for the first quarter of 2026.
Investment in staff development remained a priority throughout the year. SMMC introduced a redesigned onboarding programme, expanded leadership development opportunities for supervisors and emerging leaders, and continued investing in nursing education to strengthen critical care expertise.
