web analytics
May 4, 2015 / 15 Iyar, 5775
At a Glance
News & Views
Sponsored Post


Emergency Measures Considered To Avert Collapse Of Storied Israeli Hospital

JERUSALEM – Inflated staff salaries, a lack of strategic planning and reckless financial management has forced the revered Hadassah Medical Center in Jerusalem, established by the Manhattan-based Hadassah, the Women’s Zionist Organization of America in the 1930s, to the brink of collapse.

On Tuesday, the Jerusalem District Court granted the hospital’s management a 90-day “stay of protection,” during which time hospital management will be obligated to provide the court with a workable recovery plan. As part of the deal, Israel’s government will inject about $14 million into the hospital’s depleted coffers, and that amount will be matched by the Hadassah organization in New York.

The privately owned Hadassah Medical Center reported that it currently has a deficit of $367 million, with annual budgetary expenses exceeding income by about $80 million.

Doctors, nurses and many other workers at Hadassah University Hospital-Ein Kerem and Hadassah University Hospital-Mt. Scopus went on strike due to not having received half of their salaries since January. They also protested hospital management’s efforts to force the facility into formal bankruptcy and allow the Israeli government to take complete control over the facility. This could prompt Israel’s Health Ministry to summarily fire hundreds of workers.

The Histadrut Labor Federation has also threatened to step into the growing chaos if hundreds of unionized workers are fired as part of any revitalization plan. Hadassah currently owes its employees $250 million in back pay. It employs approximately 6,000 people from the metropolitan Jerusalem region.

As the hospital no longer had the funds to pay staff or suppliers, both medical facilities were forced to severely curtail their services – including the non-supply of heat to patients and workers alike.

Citizens from as far away as Modiin, who were referred by their HMOs to Hadassah for elective surgical procedures, were forced to either cancel their surgery or join a waiting list at Shaare Zedek Medical Center in Jerusalem. While Shaare Zedek was operating normally, it began to feel the impact of Hadassah’s semi-closure on Wednesday, as large numbers of new patients who would have routinely used Hadassah’s outpatient clinics and emergency room facilities began to flock to Shaare Zedek.

Israeli newspapers reported that Hadassah’s financial tailspin was spurred by a series of problems that management, led by former CEO Professor Shlomo Mor-Yosef – who presided over the facility for nearly a decade before becoming head of the country’s National Insurance Institute – allegedly failed to address in recent years. According to the Israeli business daily Globes and the Times of Israel website, the hospital’s financial hole was caused by the following factors:

The large discounts that Hadassah gave to Israel’s healthcare organizations (HMOs).

Huge annual salaries, as high as one million dollars, were paid to doctors who spent much time practicing private medicine at the hospital. And a number of senior janitors earned nearly $60,000 a year.

The construction of the Davidson Medical Tower, built with funds donated by American Jewish business tycoon William Davidson, forced the hospital to increase its overall expenditures in order to support and operate the facility. (One Israeli newspaper columnist likened the facility to a “museum, not a hospital.”)

Despite the growing deficits, Mor-Yosef and Hadassah management refused to sell off a number of lucrative properties in Jerusalem that could have injected tens of millions of dollars into Hadassah’s dwindling bank account.

Several unnamed Hadassah executives tried to pin some of the blame on Hadassah’s New York office, which had allegedly curtailed its support of the facility in the aftermath of the Bernard Madoff investment scam. The U.S. Hadassah organization admitted that it lost nearly $90 million as a result of its investment in Madoff’s fraudulent operations. But Hadassah’s president, Marcie Natan, refuted the charges. She claimed Hadassah informed the hospital in Jerusalem before the Madoff debacle in 2008 that annual donations would be scaled back by $15 million. Following the Madoff scandal, the New York office informed the Jerusalem hospital that the annual donation would be cut an additional six million dollars in order to ensure the New York organization’s survival.

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 “Emergency Measures Considered To Avert Collapse Of Storied Israeli Hospital”

  1. What about to reduce the Israeli goverment and Knesset to the half in salaries and use the other half for the Hadassah hospital, also the from NG earnings.

Comments are closed.

Current Top Story
Two killed after opening fire on police at AFDI art contest for best Mohammed cartoon.
Two Suspects Shot Dead Following Shooting at TX ‘Free Speech’ Event
Latest News Stories
Two killed after opening fire on police at AFDI art contest for best Mohammed cartoon.

Shooting at AFDI’s Mohammed cartoon art contest in Texas, two dead.

Hundreds of Israeli-Ethiopians clash with police in a protest in Jerusalem against  police brutality and alleged racism.

Hundreds of Israeli Ethiopians continued protests in Tel Aviv on Sunday, blocking traffic on the Ayalon Highway and elsewhere in the city.

Chabad-Lubavitch Rabbi Nechemya Wilhelm, director of Chabad-Ohr Menachem of Bangkok .

Rabbi Nechemya Wilhelm, director of Ohr Menachem-Bangkok Chabad House, is one of the recipients of the Jerusalem Unity Award.

The interior of the El Ghriba synagogue -- the oldest synagogue in North Africa -- on the Tunisian island of Djerba in 2009.

Israel’s Counter-Terrorism Bureau is warning citizens not to travel to Tunisia, especially during Lag B’Omer.

‘Survey Monkey’ CEO David Goldberg, husband of Facebook exec Sheryl Sandberg, dies suddenly Friday night at age 47.

A 37-year old Chareidi man, Meir Lebel “haRakdan haYerushalmi” (the dancing Jerusalemite), was seen breathing fire at the Kotel, the Tower of David and other locations in Jerusalem’s Old City on April 29, 2015. Fire breathing is the act of creating a plume of fire by breathing a stream of fuel over an open flame. […]

Rescue workers have found the body of the last missing Israeli, 22-year-old Or Ashraf, on Mt. Everest in a “complicated” location.

“DouxMatok’s technology will allow for a reduction of 30-60 percent of sugar in a product, depending on the application, and with no effect on taste.”

On June 3rd, senior Israeli officials will hold two events in memory of a trio of teenagers who were abducted and murdered last summer by Hamas terrorists.

Israeli search teams have found documents connected to Israeli Or Asraf who has been missing in Nepal since last week’s disastrous earthquake, several Twitter accounts have reported. The death toll from the quake has risen to 6,841, and Nepalese officials said there is virtually no chance of finding anyone alive. Asraf’s relatives have flown to […]

“Yes, Iran didn’t keep economic agreements, but a nuclear deal is different.” Why? Well, because it’s different.

Senior Israeli officials will hold two events on June 3 in memory of a trio of teenagers who were abducted and murdered last summer by Hamas terrorists. Unity Day and the Jerusalem Unity Prize would promote tolerance and cooperation between different sectors of the Jewish People in Israel and the Diaspora, organizers said. The prize […]

Kachlon is sounding suspiciously like Yair Lapid, the last government’s supposed champion of “social justice.”

The giant Rami Levi discount supermarket chain is negotiating to buy the financially troubled Mega stores, but it is doubtful that the talks will be fruitful, Globes reported. Rami Levi has became known for low prices, with special sales such as offering chickens at one shekel a kilogram, and for building stores in Judea and […]

The “symbolic fee” would supposedly force an improvement in tourist services, but would the pope and Jimmy Carter fork up the shekels?

More Articles from Steve K. Walz
: Israeli soldiers leave Gaza late Monday. A three-day cease-fire brokered by Egypt put an end, at least temporarily, to the fighting. See story, above.

As of Tuesday, all IDF forces operating in Gaza withdrew and redeployed to holding positions around Gaza.

Walz-080114-Map

The operation against the tunnels is a first and necessary step in the demilitarization of the Gaza Strip.

The sophisticated cement tunnels, which cost hundreds of millions of dollars, were reportedly built with Qatari government funds.

Israeli Prime Minister Benjamin Netanyahu told the nation on Tuesday afternoon that if the rocket fire did not stop by Tuesday evening, he would order “an even harsher” military response.

“They were abducted and murdered in cold blood by human animals,” Netanyahu said shortly after the bodies were found.

Awad had been released as part of the Gilad Shalit kidnapping deal. Mizrachi’s widow, Hadas, told Israeli reporters that she had opposed the release of murderers as part of any kidnapping deal, and that Awad “deserved the death penalty so he wouldn’t kill again.”

If the abductors’ goal was to force Israeli authorities to release long-serving Palestinian prisoners, the effort backfired as Israeli forces are quickly rolling up what was left of Hamas in the West Bank and are reportedly contemplating the overthrow of the Hamas leadership in Gaza should harm come to the three teenagers.

Netanyahu brushed aside Lapid’s political threats, saying that he was either too politically inexperienced or unaware of the true nature of the peace negotiations with Abbas.

Printed from: http://www.jewishpress.com/news/israel/emergency-measures-considered-to-avert-collapse-of-storied-israeli-hospital/2014/02/12/

Scan this QR code to visit this page online: