Court orders Hadassah to find recovery plan

Hospital ran out of cash provided to it by the Israeli government, is operating at a deficit of $489 million

By JTA 14 April 2014, 2:59 pm

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Workers of Hadassah Hospital Ein Kerem protest outside the Finance Ministry in Jerusalem, on Monday, February 10, 2014. (photo credit: Hadas Parush/Flash90)

A Jerusalem court ordered Hadassah Medical Center and the Israeli government to reach an agreement on a recovery plan within ten days.

Jerusalem District Court Justice David Mintz on Sunday also extended a stay of protection from its creditors, even as it continues to operate at a deficit.

Hadassah has run out of the combined $28 million given to it by the Israeli government and by Hadassah, the Women’s Zionist Organization of America, according to the Jerusalem Post. It currently is operating at a deficit of $489 million.

The next hearing, when a recovery plan is expected to be presented, is April 24.

“Anyone who was thinking he would be taking a vacation with the family during the intermediate days [of Passover] is mistaken, because the next hearing will be April 24. This is truly a matter of saving lives,” Mintz said.

Last week, the Gabbay Committee, a public committee set up by Minister of Health Yael German, recommended that control of the hospital be taken away from the Hadassah women’s organization, which would be left with one representative on the board of directors. The committee said in its findings that the organization would “continue to make substantial donations to the hospital.”

But Hadassah women’s organization said in a motion filed with the court on Friday that it would halt donations to the hospital if control is taken away from the organization, and that it would have a ripple effect on philanthropy from the United States to all Israeli charities.