WILLEMSTAD - The Curaçao Medical Center (CMC) has filed a lawsuit against the government, seeking additional funding within two weeks to prevent a severe impact on elective care, which might otherwise need to be halted.
Elective care includes scheduled medical procedures such as hip and knee surgeries, cosmetic surgery, and diagnostic tests, which are not urgent or life-threatening but are essential for patients' health.
The hospital management demands a payment of 31 million guilders from the government and cooperation in a well-defined debt relief program. During a press conference, CMC Director Gilbert Martina emphasized the hospital's urgent financial situation.
“The national hospital is bleeding and desperately needs additional funds,” stated Martina. “This can be easily resolved if the Pisas II cabinet proceeds with the payments that CMC is entitled to.”
Necessity
Financial Director Karina Lombardi-de Freitas Brás underscored the necessity of these payments. She explained that in the past, CMC could rely on a credit line from the bank, but this is now exhausted. Consequently, the hospital depends on the promised government funds, which have not yet been fully received.
In the lawsuit, the CMC management demands the payment of 20.4 million guilders or an advance of 14 million guilders for ongoing transition expenses. Additionally, they request the Court of First Instance (GEA) to order the government to pay 10.7 million guilders for care provided to undocumented individuals from January 2023 to May this year.
Martina referred to various research reports, including those from the Government Accountants Bureau (Soab) and KPMG, confirming that the healthcare budgets are insufficient. These reports were published last year. He also mentioned the CMC's audited annual accounts for 2020, 2021, and 2022 by BDO accountants.
Debt
Martina recalled the Court of Justice ruling from last year, which determined that the government owes 40 million guilders to the hospital. Part of this has been paid, but the remainder and new bills have not.
“If the government pays its old and new debt, CMC can continue to meet its obligations,” stated Martina. He believes that with debt relief, the hospital could become the best in the Caribbean, generating approximately 20 million guilders annually from foreign patients.
The CMC director highlighted the hospital's financial challenges, including the Covid-19 pandemic, shortages of materials and staff, and the implementation of the National Ordinance on Standardization of Top Incomes (LNT). Due to these challenges, seventeen specialists have already terminated their employment with the hospital. Additionally, the healthcare budgets calculated by the Social Insurance Bank (SVB) still use outdated rates, contributing to an annual shortfall of 40 to 50 million guilders. As a result, the loss up to May has increased to over 200 million guilders.