WILLEMSTAD – The Wit Gele Kruis Foundation (WGK) has received four new buses and expects to receive five more vehicles later this year. However, director Lionel Sint Jacobs indicated that the organization has seen a significant increase in the number of trips over the past five years, leading to a major financial shortfall.
Rising Demand, Growing Deficit
According to Sint Jacobs, WGK has had a contract with the Social Insurance Bank (SVB) since 2019, covering up to 3,200 one-way trips per month. However, in 2024, the foundation has been transporting an average of 4,100 patients per month, a 30% increase beyond the budgeted amount. This unforeseen demand has resulted in a monthly loss of approximately 30,000 guilders.
WGK is currently awaiting a proposal from SVB for the 2025 budget, which is expected to adjust the number of covered trips. Additionally, the healthcare authority will conduct a review of the rate structure in 2025 to assess necessary changes.
Financial Reserves Under Pressure
The financial situation at WGK is becoming increasingly strained. In 2022, the foundation had a reserve of 4 million guilders, but after a 300,000-guilder loss in 2023, the reserve dropped to 3.7 million. For 2024, a 700,000-guilder deficit is projected, bringing the reserve down to 3 million guilders by year’s end.
WGK's monthly operational costs amount to 1.4 million guilders, with 90% allocated to personnel expenses. Financial sustainability requires maintaining a reserve equivalent to two to three months' worth of operational costs.
Funding and Budget Challenges
WGK receives an annual revenue of 16 million guilders, with 81% (13 million guilders) coming from SVB under the Basic Health Insurance (BVZ), Transport, and General Insurance for Special Medical Expenses (AVBZ) programs.
Additionally, WGK receives:
2.2 million guilders from the Ministry of Social Development, Labor, and Welfare (SOAW) for family assistance and elderly care activities.
700,000 guilders from the Ministry of Health, Environment, and Nature (GMN) for consultation services.
While subsidies will increase by 6% in 2025, bringing an extra 132,000 guilders from SOAW and 40,000 guilders from GMN, the AVBZ contribution is set to decrease by 500,000 guilders annually due to a declining number of AVBZ patients.
Future at Risk
WGK emphasizes the importance of financial reserves to ensure the organization's continuity. The foundation hopes the healthcare authority’s review will lead to a structural solution for rate adjustments. Without necessary changes, the current financial challenges could jeopardize WGK’s future operations.