Court has Approved Recovery Plan
The following was sent by Marcie Natan, Hadassah National President,
I write you today to share the good news from Jerusalem that the Court has approved the recovery plan for the Hadassah Medical Organization (HMO). This plan will put HMO on the path to financial stability, while preserving HWZOA's ownership and control of HMO.
The principle that supports the recovery plan is that HWZOA and the Government of Israel (GOI) will make certain contributions and HMO will commit to enhanced accountability going forward. The recovery plan is a seven-year plan. The GOI will provide historic support for HMO in the order of over 1 billion NIS over the next seven years. For our part, HWZOA will provide $19 million annually through 2020. In addition, HWZOA will transfer real estate to the GOI. We will continue to fundraise for other efforts, including the equipping and furnishing of the Sarah Wetsman Davidson Hospital Tower, for which an additional $50 million dollars is needed. We intend to reach that goal. HWZOA will make additional contributions to the recovery of HMO.
Looking ahead, we recognize that there is great deal of work to be done, including finalizing all the details of the recovery plan. But we are confident that with the strengthened partnership that now exists with the Government of Israel, HMO's best days are ahead. With this new agreement, the GOI has shown that it values the importance of Hadassah's unique Zionist contribution and commitment to health care in Israel.
This is a significant milestone that we, along with our partners in Israel, are proud to achieve. We look forward to our revitalized partnership with the GOI as the financial stability of HMO is restored. We believe that HMO will emerge stronger than ever.
Thank you, dear colleagues, for your continued support and shared commitment to HMO throughout this time. Please continue to check the HMO Update page on our website at hadassah.org/hmoUpdate for the most current information
PS. For more detailed information, please read our talking points memo, which outlines the specifics of the agreement.