State hospitals have accumulated debts of more than €426 million, with 17 healthcare facilities also having taken out loans totalling over 187 million leva.
At the same time, some hospital directors are receiving five-figure monthly salaries. For March alone, the head of the Lozenets Hospital reportedly received over €40,000. The hospital’s debts exceed €20 million.
Against the backdrop of significant debt, directors of certain hospitals continue to receive high remuneration. Among the highest-paid are the heads of hospitals in Blagoevgrad, Veliko Tarnovo, and the Sofia-based Lozenets Hospital.
Blagoevgrad General Hospital
Debts
€4.1 million
Director’s salary:
January - €9,300
February - €36,270
March - €13,764
Dr. Stefan Cherkezov General Hospital, Veliko Tarnovo
Debts
€5.4 million
Director’s salary:
March - €14,141
Pirogov University Hospital
Debts
€41.7 million
Director's salary:
January, February - €10,416
March – €12,659
Alexandrovska University Hospital
Debts
€60.2 million
Director’s salary:
January, February, March - €8,559
Prof. Ivan Kirov University Hospital, Sofia
Debts
€5.1 million
Director's salary:
March - €14,141
Katya Ivkova, Minister of Health: "The monthly salaries of the executive directors of healthcare facilities—commercial companies with over 50% state ownership—significantly exceed those of senior government officials. Nevertheless, the financial results are negative and lead to losses for these healthcare facilities."
Lozenets Hospital stated that in March, in addition to his salary, the director also received compensation from the National Social Security Institute (NOI). The hospital in Blagoevgrad declined to comment.
Statement from the management of Lozenets Hospital: “The amount received in March by the director of ‘Lozenets’ Hospital is not only the monthly remuneration, but also the regular monthly salary plus a one-off compensation for retirement age and insurance contribution period, duly certified by the National Social Security Institute, which is paid in accordance with the law and the management contract.”
At present, no changes in hospital leadership are planned. The Minister said that state representatives on hospital boards receive, on average, between €2,000 and €4,500 per month.
Health Minister Katya Ivkova: “Some of these members of the boards of directors are also employees of the Ministry of Health. In some cases, the total amounts received range between €6,000, €7,000 and €8,000. Sometimes this combined remuneration exceeds even that of the principal—in this case, the Minister of Health.”
The Ministry plans to revise the methodology for determining remuneration for participation on boards of directors.
Health Minister Katya Ivkova: “My personal wish and belief is that this remuneration should be linked to achieved results.”
The Ministry has referred suspected unfavourable joint management contracts in several hospitals to the Economic Police.
Deputy Health Minister Petko Salchev: “For example, in the case of a contract for MRI services, broadly speaking, the revenue split is 20% for the healthcare facility providing the premises and staff, compared to 80% for the other contractor.”
The Ministry is also investigating why the state-owned company responsible for vaccine production has been operating at a loss for years.
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