A recovery plan for Jerusalem’s bankrupt Hadassah Medical Organization calls for an additional $869 million in funding and cuts to the hospital’s services.
The plan, submitted May 11 by the court-appointed trustees managing the recovery, would draw funding equally from the Israeli government and the Hadassah Women’s Zionist Organization of America, which owns the hospital. Under the plan, Hadassah would lay off 30 doctors and researchers, as well as hundreds of employees, according to the Israeli daily Haaretz. The hospital also would close several departments and restructure its board.
The hospital is saddled with nearly $370 million in debt and an annual deficit exceeding $85 million.
Hadassah declared bankruptcy in February after two large Israeli banks cut off its credit lines. The Jerusalem District Court gave the hospital a 90-day stay of protection from creditors, after which the medical organization will be restructured or liquidated.
The court must approve the recovery plan, and an assembly of Hadassah’s employees and creditors were to vote on it May 13. — jta