Financial troubles. Daugavpils Hospital may be the first to be taken over by Latvian state

Daugavpils Regional Hospital, which is in financial troubles at the moment, may become the first one to be partially taken over the state, said Latvian Minister of Health Hosams Abu Meri in an interview to TV3.
The minister said that an audit has commenced in the hospital. According to information from the new management, there are many management problems left from the previous management. However, Abu Meri could not say if the previous manager Grigorijs Semjonovs’ responsibility is under review.

Daugavpils municipality and Riga Stradins University, which has shares in the hospital, will decide on measures to stabilise the situation in the hospital.

The minister said an action group has been composed. Members of the group have until the 10th of January to present a vision as to how the state could assist and take over the hospital.
For the state to get involved in the hospital, it will be necessary to perform massive audits, so that the situation and potential future risks become clear, said the politician. He did not say the extent of the costs this undertaking may require from the state.
Abu Meri reminded that the intended changes to the regional hospital network continue in parallel. Daugavpils Hospital may be the first one to undergo changes and be taken over by the state.

The minister said nearly all hospitals have financial problems, but Daugavpils has the biggest problems.

As previously reported by LTV, Dauvaspils Regional Hospital has serious financial troubles. It owes money to suppliers and hospital staff. This is why the wages of doctors who are currently paid more than EUR 2 000 will have their wages reviewed next year. The debt to suppliers reaches EUR 6 million.
The new head of Daugavpils Regional Hospital Inta Vaivode explained that nearly 70% of workers whose wages will be reviewed already came to her and signed a written agreement to have a portion of their wage to be transferred to January.
Daugavpils municipality currently owns 88.64% of the hospital’s shares, Augšdaugava county municipality owns 8.93%, and Riga Stradins University owns 2.43%.
Daugavpils Regional Hospital has 1 670 employees, according to data from Firmas.lv. Last year the hospital’s turnover was EUR 50.97 million. Losses reached EUR 3.5 million.
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