Hadassah Hospital files for liquidation

The Histadrut says it plans declaring a general labor dispute in the public healthcare system.

Even as the Knesset Finance Committee discusses the condition of Hadassah Medical Center ahead of another hearing at the Jerusalem District Court, the hospitals trustees have filed for its liquidation.

In response to the announcement, the Histadrut (General Federation of Labor in Israel) said that it plans to declare a general labor dispute in the public healthcare system, as the filing affects all nurses and administrative staff at public hospitals, Clalit Health Services, and Meuhedet Health Services.

The motion for liquidation was filed two months after Hadassah filed for a stay of proceedings. Such a motion is usually filed after all attempts to revive a company as a going concern, or to sell it at easy terms, have failed. In the case of Hadassah, the motion was reportedly filed to pressure the government and the unions to sign a recovery plan quickly, using the threat of closing the hospital. Closing Hadassah is unacceptable, as its two hospitals at Mount Scopus and Ein Kerem serve all of greater Jerusalem, and there is only one other hospital in the city Shaare Zedek Medical Center.

A top health official believes that Hadassah hospital's management and the Hadassah Women's Zionist Organization of America are trying to use the motion for liquidation to compel the government to accept their proposal for the hospital, under which the Hadassah Organization will continue to own it. The Gabbay Committee appointed by Minister of Health Yael German recommends taking the hospital away from the organization in exchange for a capital injection.

Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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