The cabinet on Wednesday approved the health minister’s proposal to provide €70 million in guarantees to allow private hospitals to join Gesy.
Government guarantees to cover financial costs if the plan goes awry were among the terms demanded by the private hospitals’ association Pasin that agreed last week in principle on a framework agreement for joining the national health scheme.
The association agreed to a memorandum of understanding (MoU) as a basis for negotiations between each of its members – clinics and hospitals – and the Health Insurance Organisation (HIO), the state body tasked with overseeing Gesy.
“With today’s decision, I believe, the political will is there to guarantee the financial terms deriving from this memorandum,” Health Minister Constantinos Ioannou said after the cabinet meeting.
He explained that the €70m will be added to his ministry’s budget and will be paid only to cover possible deficits likely to emerge in implementing what has been agreed between the HIO and Pasin on inpatient care for the years 2021 and 2022.
Ioannou said the purpose of this decision was to ensure that the financial obligations arising from the MoU to be signed by himself, HIO and Pasin and the contracts signed with each hospital interested in joining Gesy will be respected.
“On the other hand, it would allay Pasin’s concerns about the viability of private hospitals,” Ioannou said.
The Mediterranean Hospital of Cyprus in Limassol announced on Wednesday it is the first private hospital to express interest in joining the second phase of Gesy and would now go into consultations with HIO.