Govt to propose scrapping bailout of hospitals

Amendments to the law on the bailout of public institutions on the agenda for Thursday's government session proposes that the bailout in the health sector be abandoned as it has not yielded the expected results.

The decision to back out of the bailout in the health system was proposed by the Health Ministry because it has not brought in the expected results and once the decision comes into force, founding rights would be reinstated to the founders.

Currently 31 health institutions are in a bailout process and if parliament adopts the government's proposal, they will be returned to their founders which in most cases are county authorities.

The adoption of the law would result in a saving of the cost of salaries for bailout committee members. 

The proposed amendments passed through a public debate and Health Minister Dario Nakic underscored that the proposal was being made as it was obvious the aims of the bailout were not achieved and even after an injection of HRK 5.3 billion into the system, new debts have been created.

"Our objective is for these institutions to start operating successfully considering that hospitals recorded an additional deficit of HRK 300 million and the year before that, when the bailout law was adopted and the financial recovery project launched, a debt of about HRK 1.5 billion was created," Nakic said.

Last update: Wed, 09/03/2016 - 20:19

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