JERUSALEM, January 18, 2014 (WAFA) – Growing Palestinian Authority (PA) debt to the East Jerusalem hospitals created major cash flow problems and is threatening services these hospital provide to thousands of patients, a statement by the East Jerusalem Hospitals Network (EJHN) said late last week.

Accrued debt from the Palestinian Authority (PA) for specialized patient care exceeded $40 million as of December 31, said the network.

The PA’s debt to the East Jerusalem hospitals has persisted over the last 18 months contributing in major delays in staff compensation and supplier remuneration, said the statement.

The EJHN includes six facilities --- Makassed Charitable Hospital, Augusta Victoria Hospital, St. Joseph Hospital, St. John Eye Hospital, Palestine Red Crescent Society Hospital and Princess Basma Rehabilitation Center, --- which serve as the main centers for specialized care within the Palestinian health system.

Patients needing services and procedures that are not available in the West Bank and Gaza are referred for treatment in the EJHN facilities by the Palestinian Ministry of Health.

In 2012, a total of 25,381 West Bank and Gaza patients were referred by the health ministry to East Jerusalem, representing over 45% of all ministry referrals, and more than half of the hospitals caseload.

In 2013, a total of 26,850 referrals were sent for treatment by the ministry to East Jerusalem, representing 43.5% of all referrals.

In spite of recent European Union financial support to the PA to pay part of its outstanding debt to East Jerusalem hospitals, the PA debt continued to accumulate given the PA’s current lack of financial capacity to cover its costs.

“This continuous debt has negatively impacted hospital operations causing hospitals to request credit lines, delay payment to vendors and postpone staff salaries,” said the statement.

The EJHN has also warned that the achievements of its six health facilities as a result of support they have received from EU and the World Health Organization (WHO) in the last four years for quality improvement and institutional development will also be threatened if the financial crisis continues.

It appealed for urgent financial assistance to sustain the services of the six hospitals and called on donors to support the PA to meet its obligation towards the East Jerusalem Hospitals or to allocate funds directly to the hospitals to be used specifically for paying off PA debts to them.

M.S.