Hadassah Hospital's Cyprus Venture Sparks Controversy With Health Ministry

Hadassah Hospital recently opened a clinic in Limassol, Cyprus, in a ceremony attended by the Cypriot president. However, the move has drawn criticism from Israel's Health and Finance Ministries, who claim they were unaware of the venture and question its business model. The project, which aims to eventually establish a full hospital in Nicosia by 2027, is reportedly owned by a Cypriot entity, with Hadassah not holding shares and its doctors not being direct employees. Instead, Hadassah doctors will train Cypriot staff and provide consultations, with the hospital expecting to benefit from medical tourism and a share of the revenue.

The development of the medical campus in Nicosia is being handled by Osopil, a company registered to Israeli entrepreneurs David Alster and Eli Israeli. Alster and Israeli are known for their involvement in Israeli real estate and business ventures. The Health Ministry has expressed concerns about the lack of transparency and potential resource leakage from Israel's public health system, while Hadassah asserts that the project is based on a 2016 agreement approved by the ministry, which also covers ventures in Russia and Mexico.

Hadassah claims the Cyprus initiative is part of an old agreement, known to the Health Ministry since 2018, which also sanctioned collaborations in Russia and Mexico. The hospital in Moscow, established under the Hadassah brand, operated successfully until recent years, though Hadassah's involvement has since been significantly reduced due to the war in Ukraine. The hospital also faces scrutiny over a $30 million indemnity for Israeli doctors involved in the Russian project, a measure taken due to international insurers withdrawing from Russia.

In Mexico, Hadassah's involvement is primarily focused on genetic testing for the local Jewish community, facilitated by the hospital's donors, as part of its medical tourism efforts. Representatives from Hadassah and the Health and Finance Ministries are scheduled to meet in the coming weeks to discuss the project, with the upcoming elections potentially impacting the approach to public-private healthcare collaborations.