web analytics
August 1, 2015 / 16 Av, 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
Israeli soldiers seen praying in the compound of Joseph's Tomb in the Samaria city of Nablus early in November 2009.  Believed to be the final resting place of the Biblical patriach, Joseph's Tomb has seen fierce Israeli-Palestinian. (FILE)
Arab Terrorists Attempt to Torch Joseph’s Tomb
Latest News Stories
Israeli soldiers seen praying in the compound of Joseph's Tomb in the Samaria city of Nablus early in November 2009.  Believed to be the final resting place of the Biblical patriach, Joseph's Tomb has seen fierce Israeli-Palestinian. (FILE)

Palestinian Authority Arabs attempt to torch Joseph’s tomb in retaliation for Duma arson attack.

Israel Border Guard Police patrol the Dome of the Rock in Jerusalem's Old City, on the Temple Mount.

Israel Police are on nationwide ‘high alert’ in response to an uptick in Arab violence.’

Public Security Minister  Gilad Erdan, seen during a visit to the Western Wall and to the Temple Mount in Jerusalem's Old City as tensions rise in Judea and Samaria.

Arabs attacked Israeli forces in Jerusalem, Judea and Samaria on Sabbath over the deaths of an innocent baby and a terrorist.

There were no injuries, but the bus was badly damaged.

State Dept. claims Congress is “looped in,” but IAEA head refuse to testify at Senate hearings.

They are throwing rocks and blocks at the drivers as they drive by.

“Families should not be stuck paying hidden fees, or buying ‘premium’ seats, simply because they wish to be seated together on crowded flights.”

Arabs threw firebombs and stones at Jewish people, homes and cars all week long, yet the mainstream media missed most of the reports.

The IDF and police are combing Judea and Samaria to search and arrest the attackers.

“Yesha” and Binyamin Regional Council leaders said the attack “is not the path of Jews in Judea and Samaria.”

Saudi Arabia may buy $5.4 billion worth of PAC-3 missiles as part of an effort by the Obama to soothe Riyadh’s anger over the nuclear agreement with Iran. The State Dept. approved the Lockheed missile sale, which also would be another plum for the military-industrial complex. Lockheed stated, “Lockheed Martin is supporting the US government […]

Prime Minister Binyamin Netanyahu issued a statement after this mornings’ arson-murder, apparently by  price-tag terrorists, near Shechem (Nablus): I am shocked over this reprehensible and horrific act. This is an act of terrorism in every respect. The State of Israel takes a strong line against terrorism regardless of who the perpetrators are. I have ordered […]

Thousands of security forces have been deployed to the Temple Mount. Mother and brother of baby are in critical condition.

The initial investigation indicates that Price Tag vandals have now graduated to murder.

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: