RECEIVERSHIP URGED FOR ISRAEL'S GSF

The Israeli government has said it will provide a NIS400 million ($131 million) bridging loan to the General Sick Fund, which provides health care for about 70% of the population. Also, the ministry of Health is to transfer essential drugs and medical equipment worth NIS30 million ($10 million) to the GSF, according to requirements.

Current estimates put the GSF's debts at about $535 million, despite management claims that in 1993 it hardly strayed from its $2.2 million budget. The main problem is that due to political matters such as the Histadrut elections, the GSF does not yet have an approved budget for 1994, and funds from the Histadrut and government have dried up. This has been worsened by large rises in the daily costs of hospitalization (as decreed by the Health Ministry) and higher than forecast rises in collective wage agreements.

The Finance Minister had urged the cabinet to place the Fund into "active" receivership, but the government turned this down by a large majority. Receivership is also opposed by former Health Minister Haim Ramon, newly-appointed as Secretary-General of the Histadrut, who says it is inappropriate because of the change of Histadrut leadership, the recent appointment of Ephraim Sneh as Health Minister and the "certainty" that the National Health Insurance Law will be passed shortly. What the GSF needs is funds, and quickly, he says, adding that once he assumes office he will look into the possibility of selling assets, as has been requested by the Finance Ministry.