A unique and prestigious residential project in now being built in Mekor Haim Street in Jerusalem.
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.
Many Pakistanis consider bin Laden a “hero of Islam.”
Two major obstacles have kept Israel from joining the program: Allegations by U.S. officials that Israel has discriminated against Arab- and Muslim-Americans seeking entry, and a proliferation of young Israelis traveling to the United States as tourists and then working illegally.
A Lebanese man who was arrested in Thailand on suspicion of belonging to Hezbollah admitted to targeting Israelis, Thai media reported.
On Friday afternoon, Syrian fighter jets hit opposition/rebel targets and villages on the Syrian side of the Ramat HaGolan (Golan Heights), in the Quneitra region. Large pillars of smoke are seen rising from struck areas. Quneitra is the site of an official crossing between Syria and Israel on the Golan. IAF jets were sent out […]
As Rabbi Stav said, “You’re free to think what you want. But do you want me to recognize Chelsea Clinton’s child as a Jew?”
Chimpanzees and Orangutans eat Matza, unleavened bread traditionally eaten during the Passover holiday, at the Ramat Gan Safari on Thursday, April 17, 2014. I hope they can digest it. On Passover no leavened bread (Chametz) is allowed in Jewish possession, and that includes food we feed our animals.
Following intelligence reports of further expected Arab rioting and violence on the Temple Mount today, the police have placed restrictions on Muslim entry to the Jewish holy site, according to a report on Arutz-7. Entry will be limited to Muslims over the age of 50, and women, also they must be Israeli citizens or residency […]
PA President Abbas’s refusal to publicly condemn the terror attack that killed Baruch Mizrachi is putting a damper on the parade.
The Shas political party, founded and run by the late Rav Ovadia Yosef, has a appointed a new spiritual leader, according to a Galei Tzahal report. The rabbi chosen to replace Harav Ovadia and be the new president of the party’s Council of Torah Sages is Rabbi Shalom Cohen. Aryeh Deri is the political leader […]
In 1941, the Jews of Kiev received a similar leaflet. When they showed up the next day, more than 34,000 were murdered.
Teen stabbed in South Florida high school.
The Kotel Plaza, the stairs, the Kotel entrance, the roads, everything was packed for Birkat Cohanim – the Priestly Blessing of the People – now imagine if this had been held on top of Har HaBayit, the Temple Mount!
Four Israeli citizens were hurt Thursday in a road terror attack near Tekoa in Gush Etzion.
Israel Police closed access to the Temple Mount to Jews and other non-Muslims on Thursday due to Arab violence.
Jews in Donetsk, Ukraine this week were ordered to “register” themselves and their assets.
Kerry reportedly admitted that he had “made a mistake.”
Before returning to Washington, Abbas reiterated to Kerry in a face-to-face meeting in Ramallah that the PA and the Arab League would never recognize the existence of a Jewish state in Israel.
Dechner admitted funneling significant amounts of money to the defendants in order to move the Holyland project forward.
On Tuesday, the London Daily Telegraph reported that an intelligence source involved with the secretive investigation into the plane’s disappearance claimed that the incident might have been part of a deliberate suicide mission by one of the pilots or someone on board the aircraft. International aviation experts, including Israeli officials, believe that someone deliberately punched in a computer rerouting code shortly after takeoff.
According to Arab and Israeli media sources, Abbas steadfastly demanded that the White House prod Israeli Prime Minister Benjamin Netanyahu into releasing convicted killers Marwan Barghouti and Ahmad Sa’adat. He also reportedly insisted that Israel freeze all settlement construction activities in exchange for extending the peace talks until the end of the year.
JERUSALEM – Israeli Prime Minister Benjamin Netanyahu condemned the international community on Monday for turning a blind eye to Iran’s continued attempts to foment global terrorism.
Despite Obama’s threat of military force against Assad unless he relinquishes his chemical weapons cache, Assad has repeatedly failed to meet UN deadlines to deliver his deadly arsenal to a special arms disposal unit.
IAF jets and advanced drones have been aggressively monitoring the transfer of advanced Russian and Iranian made weaponry from Syria to Hizbullah bases in Lebanon.
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: