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OKYpY expects an operating cash surplus of €10 million for 2023

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Λειτουργικ ταμειακo πλεoνασμα €10 εκατ. ανα&mu ;νει για το 2023 ο ΟΚΥπΥ

An operating cash surplus of €10 million is predicted to be recorded by the State Health Services Organization, according to its announcement, which, as it notes, “reflects the strong foundations for its autonomy” .

The revenues of the Organization appear increased by more than €100 million compared to the current year. The deficit of €65.98 million concerns capital expenditures, such as the purchase of medical technological and IT equipment, as well as development projects, which require time for their completion.

OKYpY projects were delayed in the midst of the pandemic , while their expenses were budgeted. For the three-year period 2022-2024, capital expenditures are estimated at approximately 250 million euros, of which €100 million will be allocated to equipment and €150 million to infrastructure.

“The ultimate goal of the Organization is its financial autonomy and it will succeed by operating with the orderly financial management of its resources. The Budget of the Organization has been prepared on the basis of International Accounting Standards”, says the announcement of OKYpY.                                                       

Based on the data submitted to the session of the Parliamentary Committee on Health that discussed the matter on Thursday, the total revenues of the Organization for the year 2023, excluding the state sponsorship, are expected to reach €612.4 million compared to €501, 7 million of the 2022 budget. The main reason for this difference concerns the inclusion of provision for revenue from the distribution of medicines in OKYpY pharmacies, amounting to approximately €126 million, which procedurally should be reflected in the Organization's budget.

Accordingly, the Organization's expenses amount to €610.9 million compared to €505.5 million last year. The difference, proportionally, concerns the expenses for the purchase of medicines, while a reduction has been budgeted for the operational expenses of the Organization, taking into account the actual results to date and also the efforts of the Directorate to contain the operational expenses.

Taking into account the above, for 2023, the Organization is expected to present an operating cash surplus of €10m. After deducting depreciation, which is not a cash outflow, the accounting operating surplus will amount to €1.7m.

According to the plans of OKYpY, the operating cash surpluses are expected to increase in the coming years and specifically will amount to €18.6 million in 2024 and €33.6 million in 2025. Additionally, for the year 2023, as well as in total for the three years 2023 – 2025, significant funds of €123.3 million and €311.2 million respectively have been budgeted for equipment purchases and mainly for development projects, which concern the upgrading and expansion of the building infrastructure of all the hospitals of the Organization, most of which are expected to be announced in the first quarter of 2023.

Presenting the budget of the Organization to the Parliamentary Committee of Health, the President of the Board of Directors of the Organization, Marios Panagidis, stated: “The Management of Organization confirms through the budget for the three years 2023 – 2025 its commitment to achieving the important goal of the Financial Autonomy of OKYpY. This goal now seems to be achievable with the faithful implementation of the actions of the Business Plan, with continuous efforts for better organization and improvement of the services provided, with the necessary reforms and reorganizations where they are needed, but also with the creation of conditions of consent and cooperation with all agencies”.

Source: www.reporter.com.cy

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