Health budget rises to €1.4bn amid Gesy concerns

The health ministry’s budget for 2027 will reach €1.4 billion, an increase of around three per cent compared to 2026, Health Minister Neophytos Charalambides told the House health committee on Friday. Presenting the budget, Charalambides outlined a series of planned measures aimed at strengthening healthcare services, addressing staffing shortages and improving the financial sustainability of public hospitals. A significant portion of the increase concerns the state’s contribution to the general health scheme (Gesy), which will rise by approximately €38 million to €908 million in 2027. Calls for Gesy review Gesy was a central focus of the discussion, with MPs calling for a comprehensive evaluation of the scheme seven years after its introduction. The debate centred on ensuring universal coverage, improving the quality of healthcare services and safeguarding the system’s long-term sustainability. House health committee president and Disy MP Savia Orphanidou described Gesy as one of the “most important achievements for citizens”, stressing that protecting, evaluating and continuously improving the scheme was a collective responsibility. She raised concerns over long waiting lists, shortages of certain treatments and shortcomings in the quality of some services. Orphanidou also pointed out that preventive healthcare accounted for just two per cent of spending, compared with a European average of four per cent, and called for greater investment in mental health services. Akel MP Marina Nikolaou described the budget increase as “fictitious”, arguing that approximately €38 million of the additional €47.5 million would go towards the state’s contribution to Gesy rather than strengthening other healthcare services and public hospitals. She also said the number of budgeted staff positions had fallen by 87 compared to 2026, despite continuing shortages in personnel, infrastructure and services. Nikolaou reiterated the need to complete a comprehensive assessment of the country’s healthcare requirements and develop oncology and radiotherapy services within the public sector. Alma MP Odysseas Michaelides questioned whether rising Gesy revenues had translated into better services for patients. Citing figures showing that the scheme’s revenues had increased from €1.3 billion in 2021 to €2.13 billion in 2026, a rise of approximately €830 million, he argued that patients continued to face long waiting times. He also highlighted gaps in coverage, including therapeutic dentistry and dental care for people with disabilities, and called for a comprehensive system to measure clinical outcomes and objectively assess the quality of healthcare services. Concerns over Okypy’s finances The financial sustainability of the State Health Services Organisation (Okypy) and public hospitals was another major issue raised during the discussion. Disy MP Giorgos Pamborides expressed concern over what he described as the absence of a substantial policy to reduce Okypy’s administrative and operating costs. He also welcomed an agreement to recruit care assistants in public hospitals, saying it would allow nurses to concentrate on their clinical duties. Michaelides likewise questioned whether projected savings and increased revenues would be sufficient to address the organisation’s structural financial problems. Direct Democracy MP Yiannis Laouris said Okypy’s deficit stood at approximately €300 million. Responding, Charalambides said the objective was not to allow deficits to continue accumulating, but to ensure the rational management of revenue and expenditure in line with the services provided. He rejected suggestions that progress towards Okypy’s autonomy had stalled, stressing that efforts should continue through targeted measures and an assessment of the organisation’s financial position. The minister said a comprehensive study by consulting firm PwC was expected to be completed soon and would help identify further measures to improve Okypy’s finances. He added that a joint committee involving the health and finance ministries and Okypy had been established to implement policies aimed at increasing revenue and containing expenditure. Healthcare staffing shortages MPs also raised concerns about shortages of healthcare professionals, particularly doctors and nurses. Nikolaou argued that the continuing needs of public hospitals could not be addressed through the repeated purchase of services and reliance on overtime. She said substantial sums were being spent on temporary arrangements to cover shortages that should instead be addressed through permanent recruitment. The Akel MP also questioned plans to reduce the number of available positions in mental health services and requested details of the ministry’s reorganisation study and its assessment of permanent staffing needs. Responding, Charalambides said an assessment of healthcare personnel was underway, alongside plans to develop a digital platform to record and evaluate the qualifications and competencies of health professionals. On nursing shortages, he said a plan had been finalised to address staffing requirements over the next five and ten years. The minister also referred to the possible recruitment of healthcare professionals from third countries, stressing that “long-term dependence on foreign workers is not a strategic goal”. He said the priority remained strengthening the domestic workforce, although arrangements were being considered to recruit nurses from third countries until sufficient numbers of locally trained professionals became available. Any such arrangements would be subject to specific conditions, including language proficiency requirements and limits on employment duration. New healthcare institutions The 2027 budget also provides for the establishment of new healthcare institutions, including a National Cancer Institute and a National Clinical Documentation Centre, as well as the reorganisation of the National Ambulance Centre. The National Cancer Institute will receive €1.1 million, while €150,000 has been allocated to the National Clinical Documentation Centre. Charalambides also outlined funding for specialised healthcare services, including €13.53 million for the Cyprus Institute of Neurology and Genetics and the Karaiskakio Foundation, and approximately €1 million for the Bank of Cyprus Oncology Centre. A further €3.9 million has been earmarked for digital health initiatives aimed at improving healthcare services, strengthening epidemiological surveillance and enhancing information management, with particular emphasis on data security and the protection of personal information. Mental health services Mental health was another central topic, with Charalambides saying the national mental health strategy, completed in 2025, had entered an extensive implementation phase. He said the strategy was structured around six pillars, each overseen by a designated coordinator, while new facilities and legislative measures were being developed. The ministry aims to complete the relevant procedures during 2027. Planned measures include the introduction of a 24-hour mental health support line and the second and third phases of construction of the new Athalassa Hospital building, for which a total of €32 million has been allocated.