Emergency alert: Hospital debts skyrocket over EUR 250 million in Hungary

Hospital debts soared past HUF 100 billion (EUR 251,667,000) by the end of February in Hungary, leading to a temporary closure of hospital wards according to medical equipment suppliers who spoke at a joint press conference on Thursday.

The three prominent professional organisations: the Association of Healthcare and Technology and Medical Technology Suppliers, the Hungarian Manufacturers and Service Providers Accredited Innovation Cluster, and the Medical Technology Association are urging the government to address the overdue debts of hospitals swiftly. According to Telex, they emphasise the critical need for prompt coverage and full settlement of these debts to ensure uninterrupted healthcare services.

The concerns raised by the organisations

Photo: DNH

László Rásky, Secretary General of the Medical Technology Association, noted that by the end of last year, the government had settled HUF 90 billion (EUR 225 million) out of the HUF 130 billion (EUR 325.2 million) debt of the health sector. However, in January, the hospitals’ debt surged back up to over HUF 83 Billion (EUR 207.6 million).

László also stated that professional organisations representing medical technology suppliers will approach the State Audit Office of Hungary. This decision comes after suppliers’ experiences showed that many institutions fail to settle the late payment interest that companies officially notify them of.

On Thursday, the foremost representative organisations of Hungary’s medical technology sector once again raised concerns about hospital’s debts during a joint press conference. During the press briefing, László Rásky stated the following:

It is a decades-old problem, which we have already told you all about.

Hospital wards closing due to debt

Photo: facebook.com/koronavirus.gov.hu

The professional organisations expressed concern that despite recent efforts to consolidate, the situation has deteriorated. Suppliers are struggling to sustain themselves without regular income and are even facing job cuts.

Tamás Rádai, director of the Association of Healthcare Technology and Medical Technology Suppliers, highlighted that hospital debts are affecting the healthcare sector, leading to temporary closures of departments and disruptions in equipment supply which is accountable for 10 to 15% of suspensions.

The director also criticised the state’s requirement for suppliers to pay VAT upfront which creates an uncertainty about when they will receive payment for their goods.

What about the government?

State Secretary for Healthcare Péter Takács. MTI/Balogh Zoltán

State Secretary for Healthcare Péter Takács pledged in early February to continue the consolidation process initiated in November, which would involve allocating additional funds to clear hospital debts. László Rásky stated the following in the press conference about this situation:

To date, the March consolidation has not taken place and we have not received a reply from the Ministry of Interior to our repeated requests.

However, experts revealed during the recent briefing for medical sector representatives that a month after the announcement, there was no update regarding the March bailout for hospitals. This lack of progress has raised concerns about the challenging situation faced by companies supplying medical equipment, according to 24.hu.

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