BRATISLAVA, September 8, (WEBNOVINY) — Parliament on Thursday approved the Cabinet’s proposal that the state allocates EUR 350 million to settle the debts of hospitals in connection with their transformation from budget-subsidized organizations to joint-stock companies. The suggested sum is lower than the assessment of overall liabilities as of the end of this year elaborated by the Forensic Engineering Institute of the Zilina University which estimates that the state-run hospitals would need financial sources totaling almost EUR 420 million. The Health Ministry has also called attention to other liabilities exceeding EUR 111 million that the institutions will have to deal with.
During a preceding discussion, the opposition did not primarily criticize the settling of debts of the state-run medical facilities but their transformation from budget-subsidized organizations to joint-stock companies, claiming that they may end up filing for bankruptcy and in hands of private investors due to accumulating debts and their incomplete settlement. “Privatization of state-run hospitals is you goal,” said Branislav Ondrus (SMER-SD). “It is not true, transformation will stabilize hospitals in Slovakia,” responded Health Minister Ivan Uhliarik stressing that the state will be a 100-percent owner of the future joint-stock companies.
The opposition also slammed the fact that the debt settlement only concerns state-run hospitals. Still, parliament did not okay the procedural proposal for the material being returned to the Health Ministry for reworking so that the funds earmarked for financial stabilization would also be provided to non-state hospitals that have to undergo transformation.
The debt settlement program should have clear rules and be supervised by a committee of three Finance Ministry’s and three Health Ministry’s representatives. Finance Minister Ivan Miklos warned in early July that since the volume of sources for settling debts of hospitals is limited and lower than overall demands, claims of primary creditors of medical facilities will be satisfied first. The debt settlement should be run in three phases. Outstanding debts to the public sector, for example to the social security provider Socialna Poistovna, should be settled in the first phase without a special agreement.
The revision to the law on health insurance companies that took effect in April of this year facilitates transformation of state-run hospitals to joint stock companies. Hospitals have time to do so by the end of the year while the deadline can be moved forward by six months in justified cases. The state will be a founder and a 100-percent shareholder of the future joint-stock companies and the Health Ministry or a respective ministry, e.g. the Transport or Defense Ministry, will act on their behalf in specific cases. New joint stock companies will be responsible for all liabilities and claims as well as obligations towards employees. A total of 31 facilities should be transformed.
SITA