By the end of September, Hungarian hospitals could have a debt of more than HUF 100 billion (EUR 256 million) to suppliers. According to the secretary general of the Hungarian Medical Technology Association, many companies are close to bankruptcy. The government gave HUF 60 billion (EUR 154 million) for consolidation during the summer. However, it was most likely spent on wage payments, as hospitals did not have enough money to cover those.
Szabad Európa reported that by the end of October, hospitals would have to settle at least HUF 60 billion (EUR 154 million) in debts to suppliers. According to their professional association, the total debt could exceed HUF 100 billion (EUR 256 million) by the end of September. There are over 4,000 suppliers in the entire hospital system in Hungary. Out of those, about a thousand are medical equipment suppliers, and the rest are other goods and services that are necessary for the operation of hospitals.
Growing debt
According to the Treasury, the stock debt was around HUF 70.2 billion (EUR 180 million) at the end of June, falling to HUF 62.8 billion (EUR 161 million) by July, but rising to HUF 71.5 billion (EUR 183 million) in August. However, including universities, the debt of hospitals continues to grow. The amount owed to suppliers and utility companies is estimated to have exceeded HUF 90 billion (EUR 231 million) in July and HUF 93.7 billion (EUR 240 million) in August. According to the association’s secretary general, this is a historic record.
Help from the government
The State Secretary for Health, Péter Takács, indicated in early July that there would be a partial consolidation in the summer, about half of the debt. It later turned out that the government had given hospitals a total of over HUF 60 billion (EUR 154 million) to settle their debts. However, the figures did not add up. Despite the help from the Hungarian government, the debt had risen to HUF 93.7 billion (EUR 240 million) by August.
The government has communicated that the money will be used to cover last year’s and this year’s utility bills for hospitals. In principle, it could only be used for this purpose, but this was not specified in the government decision. It was later revealed that the hospitals had not been given the money to cover the pay rises. Therefore, most of the money from the government was spent on wages. Suppliers did not receive any money. If the debt toward suppliers is not settled in time, patients will feel the negative effects of this significant problem.
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A national disgrace, and another reason to find out why we have money for “ethnic” Hungarians and huge defense spending, and not for us that live here! Where would Victor go if he got sick?
It’s the tip of the ice-berg.
How, the support for Orban/Fidesz remains, though it is rapidly subsiding, still by to many Hungarians, astounds me.
Hospitals, Health Care, Public Services, Education, Public Transport, MAV, – separation from the European Union – no funding, friendships with “other” democratic governed country’s – our Economy in Tatters, the forint, being de-valued, and we know that ain’t ALL the HAVOC and destruction that the Orban Government, has given us at this point in time.
It will WORSEN – sadly.