Tuesday, 23 June 2026
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LatviaPublished: 23 June 2026 at 03:21

Finance Ministry: Hospital Bill Can Proceed Only After Funding Issue Resolved

Latvia's Finance Ministry insists that the Clinical University Hospitals bill cannot be passed without a clear funding source, citing budget constraints and the need for compensatory measures.

Foto: Jauns.lv

The Finance Ministry (FM) has stated that the Clinical University Hospitals bill can only be moved to the final reading in the Saeima after the funding issue is resolved. The FM calls on the Health Ministry to prepare an informative report on the development directions for university hospitals and the financial impact of implementing the law, which could increase significantly.

The bill's annotation forecasts fiscal impact on the state budget: €102.8 million in 2027, €106.7 million in 2028, €110.7 million in 2029, and €114.8 million in 2030. These funds are needed for readiness financing, salaries for unique specialists, research, and infrastructure maintenance.

However, the FM notes that the current fiscal space is limited. In 2027, the available fiscal space is €80.3 million, while in subsequent years it is negative: -€153.3 million in 2028, -€191.1 million in 2029, and -€883.5 million in 2030. This means additional funding is not available without compensatory measures. Given the geopolitical situation, an improvement in fiscal space is not expected soon.

The FM also reminds that several healthcare policy planning documents have already been approved, requiring significant additional funding. Additionally, the State Audit Office's review revealed inefficiencies in inpatient healthcare and suboptimal resource use. Therefore, funding for the bill's provisions must be provided within the budgets of the relevant ministries, through expenditure reviews and compensatory measures that do not negatively affect the general government budget balance.

The Saeima supported the bill in the second reading in June, which provides a new legal status and governance model for the largest university hospitals, granting them greater autonomy while maintaining state oversight. A new funding approach is also planned, including readiness financing for operations during emergencies.

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