Israel Demands Full Financial Picture from Hadassah Over Overseas Ventures

Israel's Ministries of Health and Finance have demanded a comprehensive overview of Hadassah Medical Organization's international operations and associated financial risks, following the hospital's establishment of a medical center in Cyprus without prior regulatory notification. The demand extends beyond the Cyprus initiative to include Hadassah's commitment to indemnify senior staff at its Moscow medical center, potentially up to $30 million.

In a letter addressed to Hadassah Director General Prof. Yoram Weiss, the ministries requested the hospital's business plan for the Cyprus venture, details of agreements with its financiers, and the board minutes approving guarantees of up to $30 million for Moscow executives. The letter, signed by Neria Stauber from the Health Ministry and Yoav Hecht from the Treasury, was sent two days after the Cyprus center's opening was revealed by Calcalist. The ministries stated they were "made aware through various publications" of the plan, indicating a lack of prior knowledge.

The ministries view these overseas activities not just as medical endeavors but as potential financial risks to Hadassah, which received approximately 162 million shekels in government support for 2025 and has been under close financial monitoring since December. The letter warns that "medical activity outside the borders of Israel may involve resource allocation, assumption of commitments, and exposure to financial risks, the implications of which are not limited to overseas activity but could directly affect the financial condition and ongoing operations of Hadassah Medical Center in Israel."

A particularly concerning aspect highlighted is Hadassah Israel's apparent assumption of guarantees totaling up to $30 million for board members and officers of Hadassah Medical Organization in Moscow, as indicated in the 2025 financial statements. The ministries are seeking explanations for this decision, the funding sources for such potential payouts, and the risks to Hadassah Israel's stability and operations. Hadassah, along with the Accountant General and the Health Ministry, has refused to provide its financial reports to Calcalist.

Further inquiries focus on the Cyprus center's purpose, services, target clientele, business model, and legal structure. The ministries also want details on resource allocation, including non-financial assets like information systems, equipment, personnel, and management time, and the compensation Hadassah receives for these contributions. This is especially relevant given Hadassah's prior statement that it "has not invested a shekel in the venture and does not finance it," with its involvement limited to providing consultation and clinical standards.

Regarding the Moscow center, which operates within the Medscan network (partially owned by Russia's Rosatom since 2023), the ministries are pressing for clarity on the indemnification decision, its approval process, funding mechanisms, and financial risks. Hadassah is required to submit a detailed business plan for Cyprus, financial impact assessments, agreements with financiers, and board minutes approving the Moscow guarantees. The ministries will review the legal, budgetary, and regulatory implications of these overseas activities to ensure they do not compromise medical services for the Israeli public.