Gov't hospitals deepen deficits

Clalit refers more patients to its own facilities.

By
December 30, 2008 20:42
1 minute read.
hospital generic

Hospital generic 224.88. (photo credit: Ariel Jerozolimski [file])

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

To save money, Clalit Health Services - the country's largest health fund - is increasingly supplying services to members at its own community facilities and medical centers, rather than in government hospitals. This trend is a main factor in higher deficits in the state-owned hospitals. This is one of the conclusions of a report by the Health Ministry's accountant's office released for publication on Wednesday. All the government hospitals except two reported operating deficits in 2007. The total deficit reached NIS 404 million in 2007 compared to NIS 368m. in 2006. The only state-owned hospital to make a profit was Sheba Medical Center at Tel Hashomer, while Tel Aviv Sourasky Medical Center (Ichilov) broke even. Government funding of state general hospitals declined to 3 percent of their income (NIS 194m.) in 2007, compared to 3.5% (NIS 214m.) the previous year. As a result, state-owned hospitals increasingly fund their development and infrastructure with outside donations (which will become more difficult in the current financial situation in Israel and abroad). Prepared and written by ministry accountant David Gershonovich and colleagues, the report notes that the government's 11 general hospitals comprised 46.5% of the general hospital beds in the country in 2007, with activity totalling NIS 6.7 billion that year (a rise of 5% compared to 2006). In the seventh such annual report, the ministry accountant said Clalit purchases 55% of all medical services from medical centers. Many of the hospitals have global agreements with the four health funds, including Clalit, and have to give the insurers discounts under "capping" and other agreements. These yielded NIS 557m. in savings for the health funds, at the expense of the general hospitals, compared to NIS 193m. in 2000. However, the share of discounts from global agreements, compared to hospital incomes, remained steady at 9.9%. The report also notes that a new model that fines hospital departments that have higher rates of medical negligence will continue. The model was launched by the Inbal insurance company and is supervised by ministry director-general Prof. Avi Yisraeli.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

[illustrative photo]
September 24, 2011
Diabetes may significantly increase risk of dementia

By UNIVERSITY OF MICHIGAN HEALTH SYSTEM