The fact that 70% of the operating expenses of OKYpY is spent for payroll purposes was described by the Minister of Finance, Makis Keravnos, as "very worrying".
Commenting on these data, Mr. Keravnos stated that "One cannot feel safe and say that this organization can proceed with absolute sustainability".
Time for OKYpY to settle down
In his intervention on the Morning Itinerary radio show, on the occasion of the start yesterday of the debate on the 2024 budget in the Parliamentary Finance Committee, Mr. Keravnos presented himself particularly strict in relation to the demands of the trade unions regarding the status of the newly-entered OKYpY employees.
Specifically, the Minister of Finance emphasized that "a decision has been taken by this state to create a Health System, which 'left' the Ministry of Health and was assigned to two organizations, which operate under specific legislation and this must be implemented". As he underlined, "OKYpY must be domesticated and find ways to operate on the basis of the law".
Extension of state support under conditions
He reminded that based on the legislation, in May 2024, i.e. five years after the implementation of the NHS, the state must stop financially supporting OKYPY. intention to grant an extension for one year.
"Understanding the problems, we want to support OKYPY and the state hospitals, we will give an extension of one year, provided that some conditions will be implemented, which we set together and we will monitor them", he noted.
Communicating containers OKYpY - OAU
At the same time, Mr. Keravnos mentioned that the OAU should also take a better look at how to financially support OKYpY, characterizing the two organizations as "communicating vessels".
Asked to comment on OKYpY's protests about unfair treatment by OAU that leads to the deprivation of money and the downgrading of public hospitals, the Minister of Finance underlined that it is precisely for this reason that contacts are made with both organizations.
"We also need the state hospitals but it should be understood that we cannot go back. We have to move forward."
Partners and not communicating containers answers the OAU
Strong, however, was the reaction of the Director of the OAU, Andreas Papakonstantinou, to the reports of the Minister of Finance about communicating vessels.
In his intervention on the Morning Route, Mr. Papakonstantinou underlined that OAU is the one who buys the services, while OKYPY in financial terms is the one who sells services, therefore these two cannot be communicating containers.
"We are partners, we have a common vision, but on the other hand, everyone has to do their job. One has to buy good services at the best possible price, while the other tries to sell their services and get compensated in the best possible way. That is why the consultations are held, which are not artificial, nor fictitious, they have substance", he described.
At the same time, he pointed out that the General Health System buys from both the private sector and the public sector. "The law says that they must be on equal terms," he stressed, clarifying that this does not conflict with the discussion they are having with OKYpY.
He pointed out that "OKYpY does not ask for forgiveness, we should not work with the logic that there are financial problems at OKYpY. Those services provided, as provided in the private sector, will be remunerated in the same way, but the special features that OKYpY has in terms of remote areas and specialized services within the GeSY for the beneficiaries of the GeSY, because it also serves non-beneficiaries, will fees must be paid by the National Health Service".
The Minister of Finance is rightly concerned
However, he described the concerns of the Minister of Finance as "reasonable", given that the health sector significantly affects the economy.
"The state is the owner of the public hospitals. The NHS may be financially viable, but if one of its providers, for example OKYpY, if it is not doing well, the owner, which is the state, will have to manage it, putting more money. He pointed out that he does not imply that something like this will be verified, but that it is reasonable for the Minister of Finance to be concerned.
Money follows the patient
Responding to reports about the systematic inclusion of specialties, services, hospitals and TAEP in the system, Mr. Papakonstantinou said that there is no redistribution of the budget, but that "GeSy money follows the patient. If a hospital does all the work throughout Cyprus, it will normally get the entire budget of the NHS".
"We don't do the allocation, the patient decides and the money follows," he stated emphatically.
However, according to OAU's estimates, OKYpY is going to receive approximately the same amount of money in 2023 and 2024, as it received in 2022 when there were no quality criteria.
The differentiation, as the Director of the OAU said, is in the basic services, where as the private sector is paid, the public hospitals must also be paid. He admitted, however, that OKYpY's turnover has decreased in terms of outpatients, adding that in inpatients because OKypY also has a competitive advantage, they believe it will recover.