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July 22, 2014 / 24 Tammuz, 5774
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Hadassah Hospital Recovery Calls for $869 Million in Funding and Cuts

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Hadassah Hospital

Hadassah Hospital
Photo Credit: Yossi Zamir/Flash 90

TEL AVIV (JTA) — A recovery plan for Jerusalem’s bankrupt Hadassah Medical Organization calls for an additional $869 million in funding and cuts to the hospital’s services.

The plan, submitted Sunday by the court-appointed trustees managing the recovery, would draw funding equally from the Israeli government and the Hadassah Women’s Zionist Organization of America, which owns the hospital. Under the plan, Hadassah would lay off 30 doctors and researchers, as well as hundreds of employees, according to Haaretz. The hospital also would close several departments and restructure its board.

The hospital is saddled with nearly $370 million in debt and an annual deficit exceeding $85 million.

Hadassah declared bankruptcy in February 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.

The court must approve the recovery plan, and an assembly of Hadassah’s employees and creditors will vote on it Tuesday.

Leonid Eidelman, chairman of the Israel Medical Association, which represents Hadassah’s doctors, said the association could not approve the plan in its current form.

Eidelman called on the trustees to “alter the agreement by Tuesday and bridge over the gaps so the IMA can recommend that the doctors vote for it,” according to The Jerusalem Post. “We have only a few precious days for improvements to be made that would prevent the dismantling of this vital and exquisite institution called Hadassah.”

UPDATE: The doctors of Hadassah have rejected this deal.

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4 Responses to “Hadassah Hospital Recovery Calls for $869 Million in Funding and Cuts”

  1. Judith Dowla says:

    We have the same problems in our country with hospital service cuts and debt rising. Philanthropists, others assist to the best of their abilities with bake sales, lotteries and whatever fills the coffers to cover the debt and of course we have tax write offs for those who qualify. A top notch financial adviser can wipe the slate clean. Hope resolution is in the works for your facility.

  2. Judith Dowla says:

    Yechiel, how would you implement what you have suggested to reduce the debt. Would withholding the funds (social assistance) cause enough increase in money to free the hospital of the debt that is incurring.What country could they borrow from between times? Israel is doing a lot of tech work projects with China. Good earnings in the tech industry. A loan from China maybe or trade offs. How did King David do it? We could learn from the past how solutions took place. Remember the Queen of Sheba and King Solomon and all the gifts she sent to him for his wisdom. The past can be a good teacher for the here and now or for down the road too. Any comments.

  3. Judith Dowla says:

    I doubt if Israel would take that pathway unless they dissolve their agreements with Palestine and then what? All hell breaks loose. Take away doesn't work well but in some instances it works very well. However, there needs to be choices to choose from in order to get one one needs. Remember the times of the HighPriest and the Urim and Thummin. Not used anymore that I know of. Or casting lots.

  4. Yechiel Baum says:

    Judith Dowla
    King David did not provide free expensive heathcare to our enemies whose only thought is our demise. do you suggest, we keep them healthy to accomplish their nefarious immoral aim? Did Hitler provide healthcare to the Jewish concentration camp inmates?

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