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HOSPITALS' DEBTS RISE DESPITE FINANCIAL REHABILITATION

ZAGREB, April 20 (Hina) - Despite last year's financial rehabilitation, Croatia's hospitals wrapped 2002 with higher debts than those recorded at the end of 2001, Croatian Health Insurance Institute (HZZO) director Ljubica Djukanovic said earlier this week.
ZAGREB, April 20 (Hina) - Despite last year's financial rehabilitation, Croatia's hospitals wrapped 2002 with higher debts than those recorded at the end of 2001, Croatian Health Insurance Institute (HZZO) director Ljubica Djukanovic said earlier this week. #L# Talking to reporters after a session of the HZZO steering board, she said hospitals racked up 2.3 billion kuna (EUR306.6 mln) in unpaid liabilities to suppliers last year, of which 864 million (EUR115.2 mln) had not been serviced longer than three months. At the same time, about 700 million kuna (EUR93.3 mln) was allocated the health sector as part of the financial rehabilitation to service debts. Djukanovic said that despite the major debts to suppliers, hospitals were not bankrupt because they met payroll on time and business was in order. In 2002 hospitals should have cut staff, mostly non-health personnel, but this was not done, so about 70 percent of hospital budgets covers salaries. The average gross monthly pay last year was 6,500 kuna (EUR867), or 4,430 kuna net (EUR591). It has also been established that 80 percent of machines and equipment in hospitals is ready for write-off. Next week the HZZO steering board will decide what needs to be done to curtail the further amassing of debts and analyse the extent of services provided during a recent doctors' strike. The HZZO leaders have announced 100 million kuna (EUR13.3 mln) will be allocated drugstores to cover costs so as to reduce the debt servicing period to 120 days. (EUR1 = 7.5 kuna) (hina) ha

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