The State Health Services Organization is not at risk and can become financially sound, said today the Chairman of the Board of Directors of the Organization, Marios Panagidis, after the presentation of the OKYPY Budget for the year 2021, before the Health Committee of the Parliament.
In his statements after the meeting, Mr. Panagidis said that the deficits recorded are due, among other things, to the significant increase in investments in infrastructure and equipment totaling € 195 million, for the three years 2021-2023, with the aim of significantly upgrading of public hospitals.
He also said that the General Financial Interest Services (SGEI) are not yet recognized separately in the Budget, such as e.g. including the expenses for the Athalassa Hospital, the Kyperounta and Polis Chrysochous Hospitals, as well as other Expenditures for Public Health, which are recovered either from the state or from European funds. We are in the process of costing the above costs.
In addition, he noted that the Strategic Business Plan of the Organization is currently being prepared in collaboration with a major audit firm, to add that through the Business Plan the strategy of the Organization will be finalized, as well as a series of additional actions that must be done in all levels, to improve its results, in order to achieve the financial autonomy of the Organization.
“Everyone recognizes that public hospitals have been and remain the backbone of the health system that has been called upon to deal with the health crisis. We have assured the Parliament and we want to emphasize publicly that our effort is focused on upgrading the public hospitals so that they can cope with the competitive environment of GESS “, said Mr. Panagidis.
OKYPY: Budget 2021
According to Mr. Panagidis, the Budget of OKYPY for 2021 presents total revenues of € 504,080,000, which include state sponsorship of € 120 million, according to the budget of the Ministry of Health.
It is noted that there is a significant expected increase in revenues from GESS due to the additional agreements that have been signed with OAY in 2020 and mainly concern the inpatient fees, the Accident and Emergency Departments, the Emergency Department and the Ambulance Department. .
In addition, he stated that the total expenses of the Agency amount to approximately € 553 million and relate to staff costs, which consist of the costs of civil servants, who are seconded to the Agency, hourly staff and employees with OKYY contract, to other operating expenses. of the Agency and the capital expenditures of the Agency, related to investments in infrastructure and equipment.
In addition, the Chairman of the Board of the Organization states that “based on the above, a deficit is created in the Budget for 2021 amounting to € 48 million, to add that the Board of Directors and the Management have committed to take steps to reduce this deficit to the greatest possible degree.
It also states that the Budget presents financial forecasts for the years 2022 and 2023, for which an increased state sponsorship is provided, due solely to the fact that the Agency's capital expenditures and investments will be increased for this period until 2024.
OAY: Budget € 1.3 billion with full implementation of GESY
Earlier, the Parliamentary Health Committee also examined the budget of the Health Insurance Organization, which provides revenues totaling € 1,278,952,078 and expenditures € 1,276,147,000.
It is noted that this is the first budget of OAY with GESY being fully implemented.
Presenting the budget, the President of the Organization, Thomas Antoniou, stated that GESY includes 1,745 specialists, 541 personal physicians, 196 pediatricians, 534 pharmacies, 147 laboratories and 54 hospitals in the private and public sector.
As he said the number of beneficiaries of GESS amounts to 853 thousand people, noting that 90% of the beneficiaries have visited their personal doctor at least once, 70% visited at least once a specialist doctor, 70% received medicines through GESS and the 60% performed laboratory tests through GESS.
Regarding the distribution of medicines through GESY, Mr. Antoniou stated that the system has 1,600 medicines, while he stated that it is a “conquest” that patients can choose medicines.
The GESS was tested and withstood the biggest health and financial challenge, said Th. Antoniou
Also, Mr. Antoniou stated that the GESS was tested and withstood the biggest health and economic challenge, the coronavirus pandemic, noting that the GESS came and will remain in the coming years.
He added that today “we are facing far fewer problems than we expected”, but said there was still much work to be done.
According to the President of OAY, most of the revenues of the Organization come from the revenues of GESS of € 1,270,555,508, while the amount of € 8,345,570 comes from state sponsorship and revenues of € 51 thousand from the budget of the General Directorate of European Coordination Programs and Development and other revenue.
He also noted that most of the costs relate to the cost of GESS services and in particular, to the fees of health care providers, which are expected to reach € 1,246,576,104 in 2021.
He also added that an amount of € 19,712,816 is intended to cover operating expenses, while the budget provides for development expenses of € 6,258,080 and a budget of € 100 thousand for unforeseen expenses and a reserve.
Statements by Members
DISY MP, Savia Orfanidou expressed her satisfaction, because, as she said, the second phase of implementation of the GESS was implemented without delay, under these adverse conditions of the pandemic.
He noted that “the implementation of the GESS has helped and strengthened the effort to deal with the pandemic at all levels, both from our state hospitals and from the private hospitals, which are increasingly part of the GESS”, adding that ” The pandemic and the economic crisis functioned as a stress test for the GESS and it became clear that it can finally withstand very difficult conditions “.
AKEL MP Giorgos Georgiou criticized the government for the lack of projects and investments in the public health sector, noting that hospitals are suffocating.
“Unfortunately, even though a global health crisis has made public health the most valuable asset, the rulers are upset about other things,” said Mr Georgiou.
The President of KS EDEK, Marinos Sizopoulos, said that “unfortunately we must find that the upgrade of Public Hospitals in administrative, financial and scientific level is unduly delayed and significantly affects the care offered to patients”, to note that ” “Public sector deficits continue to be high and this raises reasonable concerns for the outlook and future of the Public Sector, if immediate and effective reduction and even elimination measures are not taken.”
He also stated that it is unjustified for more than 2.5 years, after the establishment of the Board of Directors of OAY, but also of the Board of Directors of OKYPY, that OKYPY has not yet managed to properly price the services offered to GESS, resulting in the lack of significant revenue.
Moreover, for OKYPY he said that it is unacceptable that the services offered have not been invoiced yet, while for OAY he claimed that no substantial measures have been taken to combat and limit the abuses of the system.
The MP of the Cooperation of Democratic Forces, George Prokopiou, said that the GESS must be “protected with nails and teeth”.
“They will find us in front of them,” he said, “those who think that in their way and actions they will degrade state hospitals and lead them to privatization. We are not going to accept such a thing. “