web analytics
August 3, 2015 / 18 Av, 5775
At a Glance
News & Views
Sponsored Post


Hadassah Crisis Opens Divisions Between the Hospital and Women’s Organization

Saddled with nearly $370 million in debt and an annual deficit exceeding $85 million, Hadassah Hospital struggles to chart a course back to solvency.
Hadassah Protest

Photo Credit: Yonatan Sindel/Flash90

JERUSALEM (JTA) — The Sarah Wetsman Davidson Hospital Tower stretches 223 feet skyward, welcoming visitors in a bright, expansive lobby strung with banners celebrating both the State of Israel and its premier hospital, the Hadassah Medical Organization.

Opened in late 2012 at a total cost of $363 million, the tower is the largest building project undertaken at Hadassah in 50 years and a symbol of the hospital’s ambitions for the future.

Now that future is in peril as the hospital, saddled with nearly $370 million in debt and an annual deficit exceeding $85 million, struggles to chart a course back to solvency.

Last month, Hadassah hospital declared bankruptcy after two large Israeli banks cut off its credit lines. The Jerusalem District Court gave the hospital a 90-day stay of protection from creditors, after which the medical organization will be restructured or liquidated.

Both the Israeli government and the Hadassah Women’s Zionist Organization of America, which built the hospital and partially funds it, have agreed to provide $14 million in emergency funding to help weather the crisis. Amid the financial tumult, the hospital staff went on strike for two weeks. “This is a crisis that had its origins a long time ago,” said Avigdor Kaplan, who became the hospital’s director-general last year. “Now it’s gotten to a point where it can’t go on.”

Founded in 1939, Hadassah is widely regarded as one of Israel’s finest health care facilities, pushing the boundaries of medical research while providing first-rate treatment not only for Israelis, but often for patients from around the Middle East, including citizens of countries technically in a state of war with the Jewish state.

The institution, which employs 6,000 people and doubles as the main teaching hospital for the Hebrew University medical school, is a symbol of both the best in Israeli medicine and the American Jewish contribution to building the state.

But with the budgetary woes impossible to ignore any longer, rifts have opened among the hospital, the Israeli government and the women’s organization. All the parties agree that the hospital must change the way it does business, but they remain divided on the source of the crisis, who is at fault and how best to move forward.

The government has pointed to employee salaries, which it says are “significantly higher” than typical pay at Israeli hospitals. The women’s organization blames long-term financial mismanagement, describing hospital administrators as children who expect that someone will always be there to bail them out. Hospital officials blame government regulations that they say penalize them for providing the country’s best care.

Diagnosing the problem will be critical to the hospital’s recovery, but no explanation has been complete. Soon after a Feb. 11 Knesset committee hearing on the crisis, the health and finance ministries appointed a joint panel to investigate. Recommendations are expected to be released this month.

In Kaplan’s view, the hospital’s problems stem from a bad deal the hospital was pressured into reaching with Israel’s government-funded health insurance companies. Israeli hospitals typically give volume discounts to the companies in an effort to attract more business, but Hadassah’s appear to be larger than the average.

In 2013, the hospital gave the insurance companies an average discount of 26 percent. A 2010 government report found that the nationwide average that year was 18 percent.

According to Kaplan, the arrangement effectively penalizes Hadassah for performing more complex and expensive procedures. As a private hospital, Kaplan said Hadassah also covers employee pensions and malpractice insurance that at public hospitals are paid for by the government.

“The government didn’t take care of us as it should have,” Kaplan said. “They gave overly large discounts to the providers, even though we give the same kind of service to Israelis.”

About the Author:


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Hadassah Crisis Opens Divisions Between the Hospital and Women’s Organization”

  1. Earl W. Littlefield Jr says:

    The relativity of reasonableness……Will donations continue after workers union, insurance companies, supplies providers & government combine to topple another administration?????

Comments are closed.

Current Top Story
Firefighters put out fire in firebombed car near Beit Hanina on August 3, 2105.
Jewish Woman Severely Burned, 2 More Injured in Yet Another Arab Firebombing Attack
Latest News Stories
Kayaking on Jordan River

Israelis enjoy kayaking in the Jordan river in Northern Israel on August 2, 2015, as temperature reached 47 degrees Celcius in some parts of Israel.

Representative Kathleen Rice (D-NY-04)

New York Democratic Congresswoman Kathleen Rice will vote against the Iran deal.

Firefighters put out fire in firebombed car near Beit Hanina on August 3, 2105.

Arab terrorists threw firebombs at a Jerusalem car, severely burning the driver and two more people.

Some Israelis seem to have forgotten no one has yet tracked down the murderers of Ali Bawabsheh.

Americans oppose the Iran deal, and only a slight majority of Democrats support it.

Chuck Schumer’s office has received more than 10,000 phone calls over the past two weeks, all of them from groups and individuals opposed to the Iran nuclear deal.

Kerry reassures the Gulf States, who are gouging him for more arms and to force Israel out of Judea and Samaria.

Its so hot, the Arab threat to drive us into the sea don’t sound half bad…

No one was injured from the mortar fire that apparently strayed during clashes.

The gang attacked a Haredi man and then a religious couple with brass knuckles and a knife. The woman recited the Shema prayer.

The Muslims preacher is a permanent fixture on the Temple Mount to incite Muslims but finally has been arrested.

The “friendly” game was cancelled after the fans took over the soccer field.

Late PM Yitzhak Rabin’s granddaughter has announced her launch into politics.

Israeli soldiers deployed at the Gaza security fence shot over the heads of Arabs who had approached the no-go zone Monday, Palestinian Authority media reported. No one was injured. Arabs frequently approached the security fence, usually with intentions to infiltrate into Israel or to carry out a terrorist attack on the spot. Palestinian Authority media […]

Iranian double talk is clear when a top official praises the nuclear deal but warns of no IAEA inspector access to military sites.

More Articles from Ben Sales
Israeli winery

“You want to know what this wine looked like, which wine King David drank, white or red…. We can see if it’s red or white, strong or weak.”

IDF soldiers rush injured Israelis to Soroka Hospital in Beersheva after a mortar fired from Gaza exploded at an army staging area near Kibbutz Nirim, close to the Gaza border. The attack occurred shortly before a cease-fire went into effect on Tuesday. Three Israelis visiting the area were hit; two of them died of their wounds.

After a month, should the quiet hold, Israel and Hamas will restart indirect negotiations in Cairo on easing Israel’s blockade of the coastal strip and disarming the enclave.

Shlomy Zachary, an Israeli human rights lawyer, noted that Israeli cooperation with previous UN investigations has helped mitigate criticism of Israel – for example, in a 2010 UN investigation of the so-called flotilla incident.

Smart bombs: Israeli war technology isn’t limited to the home front.

“The values I learned from my parents are probably the same values I hope Christians and Muslims and Hindus and Buddhists teach to their people.”

On Monday, Lapid told JTA that he would sooner agree to freeze settlement growth than free Palestinian prisoners, as Netanyahu has done previously in an effort to advance the process.

“He was like everyone else,” she said. “He was serious. He wouldn’t mess around. He would do what I said. He was quiet a lot and thought a lot. He did everything well.”

More than having a hand on the wheel, the year since the formation of the new government has seen Jewish Home and the coalition’s other smaller parties driving much of the government’s agenda. Netanyahu’s Likud party has taken a back seat on everything besides security affairs.

Printed from: http://www.jewishpress.com/news/breaking-news/hadassah-crisis-opens-divisions-between-the-hospital-and-womens-organization/2014/03/21/

Scan this QR code to visit this page online: