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Hadassah Medical Organization Update

Dear Friends,

Last week, the Hadassah Medical Organization (HMO) announced that it is filing with the courts for Section 350 – the Israeli law that allows for an organization to restructure.

This is a difficult moment. For over a century, HMO has been a world-leading medical center and the premier medical institution serving the people of Israel. While HMO has achieved so many wonderful things, today it faces a fiscal crisis that allows for no other solution than an organized restructuring process – similar in nature to that experienced by American automakers in the wake of the financial crisis.

Today, Tuesday, February 11, the Jerusalem District Court granted Hadassah Medical Organization’s (HMO) request for a stay of proceedings. Two court-appointed trustees will formulate a plan for the hospitals. The decision gives HMO 90 days to resume operations under its governing board and current management led by Director General Dr. Avigdor Kaplan, while giving the hospitals respite from creditors.

Like that crisis that faced America’s car companies, the financial challenges confronting HMO have no single root cause. Rather, this crisis is the result of dynamics that have been building for years including unsustainably low reimbursement rates for services; unaffordable union contracts; and unrealistic commitments to the university who trains their students and conducts research at HMO facilities.

HWZOA’s position is clear; we will support HMO and do our part to help see it through the restructuring process. It is our expectation that HMO’s other stakeholders – the Government of Israel, the unions, the university and the hospitals creditors and suppliers will join us in that effort.

Over the coming weeks and months, Director General Avigdor Kaplan will help lead HMO through the court supervised restructuring process. This will be a challenging period. But just as GM emerged from its restructuring to once again lead the world in auto sales, we are confident that the recovery plan will allow HMO to emerge from this process stronger and on sustainable financial footing.

The board of HWZOA remains, as ever, profoundly proud of HMO. No financial setback can erase all it has accomplished and contributed to the Zionist enterprise. And just as the State of Israel has faced countless challenges and overcome them all, so too HMO must and will go through this difficult moment and prove its resiliency.

Please click here to sign a petition to the Government of Israel in support of HMO. We hope to gain widespread support in the greater Jewish community with this petition, so please share it on your Facebook page, other social media and email the link to friends and family. When we have a significant amount of signatures, we will send the petition and signatures to the Government of Israel.

Thank you for your on-going support!


Marcie Natan
National President

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