The Knesset Finance Committee turned thumbs down today on a $10 million allocation to Histadrut’s sick-fund, Kupat Holim, which the Cabinet approved yesterday — over the objections of Finance Minister Yitzhak Modai — to relieve the financial crisis in the country’s hospitals.
The committee withheld approval because it was not satisfied with explanations of how the money would be used. Kupat Holim, with a serious cash flow problem, has been unable to pay for patients’ services for which it has been billed. The same problem has affected other sick-funds, with the result that Israel’s public hospitals cannot meet bills long outstanding and may be forced to curtail services and possibly shut down.
Hospital directors across the country said today the situation has passed the red line — the danger point. Several hospitals are digging into their emergency medical supplies without approval of the army which is in charge of emergency medical store rooms.
The situation touched off an angry exchange between Modai and Premier Shimon Peres at yesterday’s Cabinet meeting. The Finance Minister accused the government of prolifigate spending which would ruin his economic recovery plan. Peres retorted that Modai was “demoralizing the nation.” The verbal battle was sparked by the hospital allocation.
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