BREAKING NEWS

Four Hadassah board members resign in protest

Resignation reportedly due to Finance Ministry efforts, without consulting board, to establish recovery plan to restore HMO’s financial health.

OCTOBER 30, 2013 23:06

The board of directors of the Hadassah Medical Organization in Jerusalem on Wednesday “accepted” the resignation of four of its members.

The four – chairman Esther Dominissini, Yoram Ariav, Uri Neiger and Yossi Rosen – reportedly resigned to protest against efforts by the Finance Ministry to establish a recovery plan to restore HMO’s financial health but without consulting with the board.

Dominissini is a former director-general of the Israel Employment Service, the Prisons Service and the National Insurance Institute; Ariav is a former director- general of the Finance Ministry; Rosen formerly ran the Israel Corporation and the Israel Petrochemical Industry; and Neiger was a financial entrepreneur.

The HMO spokeswoman said that businessman Avigdor Kaplan had been chosen as director-general earlier this year to “cope with the financial deficit that developed in recent years,” and that he was given “the authority to implement a recovery program in cooperation with the board to restore the HMO to longterm economic stability.”

HMO runs the two Hadassah University Medical Centers and its various medical faculty and professional schools. The hospitals are owned by the Hadassah Women’s Zionist Organization of America, whose reduced financing of HMO in recent years, as well as misguided financial agreements with the government over discounts to health funds and long-term commitments to pensions, were among the reasons for its current NIS 1.3 billion deficit.

The remaining board “backs up the director-general and supports him, so he may succeed and safely carry out the recovery process,” the spokeswoman said.

Meanwhile, for the second time in recent months, HMO staffers will receive only half their salaries on pay day in November, due to the lack of liquid assets to pay the entire amount.

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