Mercy Brothers

Allegations Known to the Health Department Since Summer

The hospital on Seilerstätte in Linz.(Bild: Pressefoto Scharinger/Daniel Scharinger)

The Department of Health was informed anonymously months ago about alleged irregularities in the internal billing of medications at the Brothers of Mercy Hospital. State Health Minister Christine Haberlander is ordering an investigation, and Linz Mayor Dietmar Prammer is demanding clarification.

The Department of Health had already learned of the allegations anonymously “before the summer,” the office of Provincial Health Minister Christine Haberlander (ÖVP) acknowledged on Thursday. The allegations pertain to alleged irregularities in the internal billing of medications at the Brothers of Mercy Hospital.

The issue involves operating losses
For example, an antibiotic is said to have been purchased for around 19.49 euros and resold to the Deaconesses’ Clinic on Weißenwolffstraße in Linz for 24.15 euros. The order’s own hospital on Seilerstätte, however, had to pay more than ten times that amount. The reason—according to the allegations—is said to be an “artificial” increase in operating losses.

Deficit Financed with Taxpayer Money?
This deficit is largely covered by public funds. “The share covered by the Hospital of the Brothers of Mercy in Linz amounted to approximately 61.7 million euros in 2025,” according to a response to an inquiry from Haberlander’s office. “After the allegations came to light, the Financial Supervisory Authority was immediately commissioned to conduct an audit.”

Call for Clarification
Dietmar Prammer, mayor of Linz and chairman of the Association of Cities and Towns of Upper Austria, is also calling for clarification: “The municipalities bear a significant portion of the hospital’s financing. They must be able to rely on these funds being used transparently and efficiently to provide care for patients.”

Public Prosecutor’s Office Investigates in Graz
Incidentally, in addition to Upper Austria, Salzburg has also initiated an audit. Styria is already a step further: The Public Prosecutor’s Office for Economic Affairs and Corruption has taken over the case from the Graz Public Prosecutor’s Office in recent days due to damages amounting to more than five million euros. “No complaint has been filed from Linz,” a spokesperson stated in response to an inquiry.

Order Responds
The Order denies the allegations and emphasizes that the figures singled out paint a “distorted picture.” However, according to a press release, billing practices at all locations are to become more transparent retroactively for the entire year 2026.

Kommentar

Hoffentlich kein Magengeschwür

For years, there has been a sense that the healthcare system is running out of money. Endlessly long wait times for a specialist appointment or surgery are just a few examples of this.

When money is tight, we should actually be looking very closely at how and where the funds are being allocated. As a patient, I can only hope that all these allegations will vanish into thin air. Because the mere thought that there might actually be some truth to them gives me an ulcer—and, as we all know, appointments with specialists are hard to come by.