The new Minister of Health, Michalis Damianos, faces significant short-term and long-term challenges in the healthcare sector.
According to information from Phileleftheros, the Health Insurance Organization (HIO) will present to the Minister of Health the problems and serious malfunctions that the absence of various legislations has begun to create in the General Health System (GHS).
At the State Health Services Organisation (SHSO), both management and administration are preparing to confront Minister Damianos, possibly raising issues related to the extension of state sponsorship and other financial matters.
The first meeting will take place today at noon at the HIO, while the meeting with SHSO is scheduled for tomorrow, before the organization’s board’s planned session.
The focus is primarily on the SHSO, as the economic issues concerning the organization must be seriously addressed by the Government in the coming months.
Reportedly, the relationship between the SHSO and the HIO will also be discussed.
SHSO’s first request is the extension of state sponsorship for another two years. This matter has been brought to the Government’s attention for several months, and statements have been made by both the Minister of Finance and former Minister of Health Popi Kanari.
What remains unclear is whether the extension of state sponsorship for SHSO will cover one or two years, depending on the decisions of the Inspector of State Aid and the relevant European Commission.
SHSO is seeking an extension of state sponsorship, citing, among other things, the two years of the pandemic, during which state hospitals underperformed and failed to achieve their goals regarding income from GHS.
Additionally, the legislation foresees the termination of state sponsorship in June 2024. Therefore, the Government must make final decisions as soon as possible.
Another important issue for SHSO is its cooperation contract with HIO, and it is expected that the Minister of Health will be asked for an increase in the unit price at which public hospitals are reimbursed for their services through the GHS.
SHSO has stated that, with the new reimbursement method, state hospitals will receive €40 million less than they did under the previous system followed by HIO.
In this case, the challenge for the Minister of Health is even greater, as the evolution of this issue will determine the stability in the healthcare sector.
A new confrontation between the two semi-governmental organizations may lead to significant complications in the overall operation of the GHS.
The backstage around this issue has been quite intense for several days, and the Minister of Health is expected to be informed about it during today’s meeting.
The third request that SHSO is expected to submit to the Minister of Health is a modification of legislation to increase the fees imposed by the organization on non-GHS beneficiaries for the services provided by public hospitals.
The fees that are currently in effect have remained unchanged since 2013 and are considered urgently in need of adjustment.
Finally, SHSO’s management and administration are expected to discuss with the Minister of Health the transformation of public hospitals into university hospitals.
This issue has been pending for eight years, and the relevant draft law has been modified several times due to objections, mainly from public doctors. The Government has expressed its readiness to promote the issue.
The draft law has already been modified once again, but its final text does not seem to satisfy all involved parties.
The top priority for HIO is to convince the new Minister of Health about the need to expedite the procedures and approve all the bills pending for years, resulting in serious malfunctions in the GHS.
Among these bills are those related to:
- The operation of rehabilitation centers: Currently, only three hospital rehabilitation centers operate within GHS, and due to the absence of a law, not all centers in Cyprus can be licensed and integrated into the system.
- The operation of radiodiagnostic centers: Rapid growth is observed in this sector without established criteria or methods of infrastructure and equipment control.
- The operation of ambulances: Under GHS, ambulances fall under SHSO, creating friction between the Ministries of Health and Finance and between SHSO and involved social partners. There are no established criteria and specifications.
- The operation of palliative care centers: Due to the lack of legislation, new centers cannot be licensed, and these services are primarily provided through GHS to cancer patients and not to any other patient group.
- The operation of hospitals: Current legislation only applies to private hospitals. The existing legislation is considered outdated, and its provisions do not cover the modern needs of patients and lack provisions ensuring access for people with disabilities. Moreover, public and private hospitals under GHS do not operate under the same law.
Most of these bills are either in the preparation stage or in public consultation.
The bill concerning rehabilitation services has been in Parliament since last June, but discussions have not started.
The bill regarding the operation of ambulances has been pending in the Council of Ministers since the summer.
HIO will also raise the issue of incorporating the process of sending patients abroad into GHS.
Following public statements by the President and directives from the former Minister of Health, Popi Kanari, HIO has initiated the necessary processes and now requires the assistance of the Ministry of Health to proceed with the planning.
During the meeting, the Minister will be informed about all the individual issues concerning GHS and the existing pending matters.
