Santa Casa's Financial Rescue Plan: Selling Assets, New Games & Hiring Changes

Santa Casa's Financial Rescue Plan: Selling Assets, New Games & Hiring Changes

The Santa Casa da Misericórdia de Lisboa (SCML), a prominent charitable organization, is implementing a comprehensive restructuring plan aimed at financial recovery. The plan, presented by the new administrator, Paulo de Sousa, to the Minister of Labor, Solidarity and Social Security, Maria Rosário Palma Ramalho, focuses on three key areas: asset sales, resource optimization, and new game development.

Asset Sales: The plan includes selling several underutilized rural properties across the country. Additionally, vacant buildings in Lisbon will be sold due to their high restoration costs and ongoing maintenance issues.

Resource Optimization: The SCML plans to merge several services, including procurement and finance departments, to streamline operations. The organization also seeks to create synergies between its various departments, including the autonomous games division, to improve efficiency.

New Game Development: The SCML recognizes the decline in revenue from its traditional social games like Raspadinha, Totoloto, Placard, and Euromilhões, which represent 80% of its income. To combat this, the organization will focus on developing new games to compete with the growing online gaming market.

Hiring Changes: The SCML plans to reduce its workforce by not replacing employees leaving through retirement, unless absolutely necessary. The organization will also shift to internal recruitment for positions previously filled through external appointments. This change aims to address concerns about excessive salaries for certain roles.

The plan, which is expected to be implemented over three years, is subject to review by the SCML's statutory bodies before being officially approved by the Ministry. The minister has expressed a desire to understand the plan in detail before making a decision.