Congratulations to all the winners of the JewishPress.com raffle at The Event
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.
Comments are closed.
Hamas murdered a 4 yr old Israeli boy with a rocket launched next to an UNRWA school/shelter for Gazan refugees.
5:33pm Shabbat Shalom from Israel. It should be a peaceful Shabbat. 5:28pm Kerem Shalom 5:26 pm Kerem Shalom 5:22pm Nachal Oz 5:13pm Erez, Miflasim 5:13pm Gaza perimeter/Sderot, Erez, Miflasim 5:13pm Gaza perimeter/Sderot 5:02pm Erez, Miflasim 5:02pm Gaza perimeter/Sderot, Erez, Miflasim 5:02pm Gaza perimeter/Sderot 4:04 pm Sdot Negev, Shaar Negev 4:00 pm Sdot Negev, Shaar Negev […]
If you are worried about your child marrying a non-Jew, and you should be, then move to Israel.
One woman fighter is enough to scare away 72 virgins.
Israel remains a lone outpost for those who know that talking to liars is not a diplomatic solution.
Obama, who is sure the “peace process” will make Hamas safe for democracy, now has crowned himself an expert on radical Islam.
There were soldiers inside the attacked Hebron building, but they managed to get out in time.
On Thursday, the Israel Air Force hit a motorcycle transporting 2 terrorists in Rafah.
Temple University’s SJP claims the pro-Israel Jewish student harassed and provoked them into assaulting him.
The White House has unblocked the weapons shipment to Israel that they had recently blocked.
10:58pm Negev 10:32 pm Eshkol 9:38 pm Ashdod, Ashkelon, Ashkelon Coast 8:47 pm Modiin-Maccabim-Reut, and area. Iron Dome Interception. 8:46 pm Beit El 20:00 pm Iron Dome downs two rockets over Be’er Sheva; three others explode in open areas. 19:42 pm Two warnings of rockets in Be’er Sheva, warnings of rockets Hatzerim , site […]
The IDF readies what it does not want unless there is no alternative – a deep ground invasion of Gaza. Hamas also is ready.
If “the only thing we have to fear is fear itself,” Diaspora Jews are in big trouble.
The security cabinet authorised Thursday the emergency call-up of 10,000 IDF reservists. Defense Minister Moshe Ya’alon said Israel would continue to pursue Hamas leaders anywhere and at any time, and added that the current campaign would “take time.” Ya’alon called on the Israeli public to display patience and strength while the army deals with the […]
As of Tuesday, all IDF forces operating in Gaza withdrew and redeployed to holding positions around Gaza.
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.
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: