Israeli Health Funds' Deficit Shrinks, But Government Aid Remains Crucial
Translated & summarized from Now 14 by baba
Israel's four health maintenance organizations (HMOs) collectively reduced their deficit to 194 million shekels in 2025, a significant improvement from the previous year, according to a Ministry of Health report. Despite this, the HMOs received 4.6 billion shekels in government subsidies, and overall healthcare expenditures continue to climb. The report also noted varying financial results among the HMOs and highlighted the substantial deficit within Clalit's hospital system, while acknowledging the need for continued financial adaptation to demographic and health challenges.
The story in 6 lines · by baba
- Israel's HMOs collectively reduced their deficit to 194 million shekels in 2025, a 44% decrease from the prior year.
- HMOs received 4.6 billion shekels in government subsidies in 2025, a crucial component of their financial stability.
- Clalit Health Services reported a deficit of 364 million shekels, while Maccabi, United, and Leumit reported surpluses.
- Clalit's hospitals alone incurred a deficit of 2.83 billion shekels in 2025.
- Healthcare system expenditures rose, with hospitalizations accounting for 43% of HMO spending.
- The proportion of out-of-pocket payments by insured individuals in financing the health basket has decreased slightly.
A Ministry of Health report for 2025 reveals a significant improvement in the financial standing of Israel's four health maintenance organizations (HMOs), with their collective deficit shrinking by 44% to approximately 194 million shekels, down from 346 million shekels in 2024. Despite this positive trend, the HMOs remain heavily reliant on government subsidies, totaling about 4.6 billion shekels in 2025, while healthcare system expenditures continue to rise.
The report highlights that the increase in government support, which rose by 491 million shekels to 4.58 billion shekels in 2025, was largely directed towards mental health services and stabilizing the HMOs' financial situations. However, excluding these subsidies and one-time financial events, the HMOs' deficit for 2025 would have been around 4.9 billion shekels, underscoring the critical role of government funding in their stability.
Financial performance varied among the HMOs. Clalit Health Services ended 2025 with a deficit of 364 million shekels, an improvement from the previous year. In contrast, Maccabi Healthcare Services reported a surplus of 111 million shekels, United Health Services had a surplus of 53 million shekels, and Leumit Health Services recorded a surplus of 6 million shekels. The report cautions that these financial results do not necessarily reflect the quality or efficiency of medical services provided.
Clalit's hospitals alone incurred a deficit of 2.83 billion shekels in 2025, though this was a reduction from the previous year. The report notes that Clalit's unique structure, operating its own hospitals, complicates direct financial comparisons with other HMOs. Rising healthcare costs, particularly for hospitalizations which constitute 43% of HMO expenses, and the overall cost of the health basket, which increased by 6.2% to 80.6 billion shekels, present ongoing challenges.
While the proportion of out-of-pocket payments by insured individuals in financing the health basket has decreased slightly, the report does not definitively state whether individuals are paying less in real terms. Furthermore, the financial data does not provide insights into service quality metrics such as waiting times or appointment availability. Ministry of Health Director General Moshe Bar Siman Tov acknowledged the encouraging financial stabilization but stressed the need to adapt budgets and support to demographic changes and increasing morbidity.
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