Government Earmarks EUR 350M For Hospital Debts

The Ministry of Finance has decided to pump extra blood into the health service in the shape of EUR 350 million to clear the debts of hospitals before they are transformed into joint stock companies, as this would give them a good start.

The EUR 350 million was calculated based on data that by the end of March the overdue debts had already amassed to EUR 240 million, with the same amount again in pending liabilities. The National Property Fund (FNM) should also be contributing, although it should then rake back in the privatisation proceeds from the companies.

The 25 hospitals that received financial assistance under the Robert Fico government in 2009 might be given a waiver and so will not have to pay it back. The debts of the state hospitals should be cleared before the end of the year.

To the end of the year state hospitals are supposed to be transformed into joint stock companies 100% owned by the state, but a six month extension is possible. he 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. New joint stock companies will be responsible for all liabilities and claims as well as obligations towards employees.


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