MPs approve debt settlement of hospitals amid protests

MPs approve debt settlement of hospitals amid protests

The state will give up to €585 million to hospitals to settle their debts, following a Health Ministry-sponsored proposal to this effect passed in Parliament on Thursday. The measure will be applied to debt incurred up to the end of last year by both state and non-state facilities. It will not be a one-off settlement and will be carried out in several rounds with older debts being repaid first. The health sector's debts amounted to €647.2 million last year with state-run university and faculty hospitals making up the biggest portion, namely €547.1 million. Hospitals owe the highest sums to special medical material suppliers and to the social insurance company Socialná poistovňa. Hospitals that join the debt settlement plan will have to observe several obligations, including meeting the recovery plan and setting up supervisory bodies. If the hospitals break the agreement, they will face sanctions. This will be the fourth debt settlement in the history of the independent Slovakia.

Suppliers of medical devices have been opposing the plan and will complain to the European Commission (EC) about it. Their association SK + MED says it breaches the provisions of the EU Directive on the fight against late payments. They do not like the fact that the debt settlement plan relies on an estimate €65 million haircut that must be provided by suppliers if they want to join. Suppliers also insist on the coverage of all maturity receivables without compromise. The association dislikes the fact that "the medical technology segment is in the maturity chain of receivables placed at the absolute end, and these suppliers are the largest creditors and at the same time sponsors of Slovak healthcare."


Anca Dragu, Photo: TASR

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