The health ministry and the state health services (Okypy) on Thursday announced the signing of a memorandum of understanding which they say will ensure Okypy’s financial and administrative autonomy.

Minister Michael Damianos said the deal has “five thematic axes”, all of which are planned to be implemented between now and the end of 2026.

Okypy, he said, will be legally obliged to implement the plan’s stipulations, which include an increase in revenue, a reduction of costs, the reimbursement of services provided by the health insurers’ organisation (HIO), capital investments, and structural changes.

Okypy spokesman Charalambos Charilaou told the Cyprus Mail that while detailed plans have been devised to achieve these aims, they cannot be disclosed.

Damianos said his ministry and Okypy have set up a working group to monitor the deal’s implementation.

In return, Okypy’s budget deficit will be covered by the government until May 31, though Damianos said the plan will continue to be implemented until the end of 2026 regardless of any situation regarding the budget deficit.