Millions Cut in Funding for National Hospital Skip to content

Millions Cut in Funding for National Hospital

Department directors at the National Hospital in Iceland recently received a letter from Vilhjálmur Egilsson, head of a committee on hospital issues, explaining that funding to the hospital would be cut by ISK 500 to 700 million (USD 8 to 11 million, EUR 5 to 8 million) next year.

“No one is saying it will be easy, but no one is saying it will be impossible either. This is exactly the same thing everyone else involved in management has to deal with,” Egilsson told Fréttabladid.

The state’s total contribution to the National Hospital amounts to ISK 33 billion (USD 534 million, EUR 363 million), but last year the hospital was operated with a considerable deficit and therefore an additional funding of ISK 1,800 million (USD 29 million, EUR 20 million) was required. As a result, the hospital will have less money next year.

“People are always looking for ways to operate more efficiently,” Egilsson said, adding he does not believe the cut in funding will result in a cut in services offered at the hospital. He explained the cut also involves shifting projects away from the National Hospital to other health institutions.

Healthcare centers in Akranes, Selfoss, Hafnarfjördur and Reykjanesbaer, none more than an hour away from Reykjavík, will thus receive additional financial support of ISK 430 million (USD 7 million, EUR 5 million) so they can take on added projects.

Magnús Pétursson, Director of the National Hospital, told Fréttabladid it is clear that the cut will have an impact on the hospital’s operations.

Pétursson said the management will stay inside the financial frame established by the Althingi parliament but it has not been decided in which departments cuts will be made.

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