You may have heard allegations that Hadassah Medical Center, owned by Hadassah, the Women’s Zionist Organization of American (HWZOA), was late on payments to some of its suppliers. There is actually LESS to this story than has been alleged. Without context, these allegations are meaningless. It is a basic reality of operating a business that when one entity that owes another fails to fulfill its financial obligations, the second entity struggles in consequence to pay its own bills on time.
Unfortunately, Hadassah Medical Organization is still waiting on substantial end-of-the-year payments due from numerous insurance companies. The hospital understands that at this time of year, many businesses – large and small – routinely struggle to make the many payments they have due, and we hoped the vendors that work with us would extend to us the same courtesy we have forced to extend to these various HMO’s.
The reality is that the remainder Hadassah Medical Organization still owes to a very few large vendors is but a tiny fraction of its overall budget, and it is essential to understand that the hospital is a mere couple of weeks behind in these few payments. Furthermore, the hospital’s funding structure is independent from HWZOA’s, and its routine end-of-the-year cash flow changes are completely unrelated. The NIS 8 Million Hadassah Medical Organization still owes is less than half of one percent of its overall budget of NIS 2 billion.
When the hospital’s board realized the cash flow it depends upon was not going to be paid in full by insurance companies, the board was certain to first pay small business owners who are affected the most by changes in cash flow, and to briefly delay payment to larger vendors who do not depend on the hospital’s payments to pay their employees. All open accounts will have been resolved and all suppliers paid in full within only a few weeks’ time.
If you have any questions, please contact Chief Development Officer Michael Ostroff at 212-303-8224 or firstname.lastname@example.org.
Date: 12/23/2011 12:00:00 AM