Government to restrict spending in public hospitals

Searching for a solution to spiralling health care costs and a close-to-collapsing health system, President Alvaro Uribe has urged public hospitals to cut administrative costs.

Caracol Radio reported that in coming days the national government will approve new measures aimed at reducing administrative costs in order to increase the resources directed towards health care.

President Uribe spoke on Radio Magdalena, emphasizing that these measures are being taken in order to protect the health sector from crisis.

“We can use Law 617 as an analogy. Since the law restrict costs for municipalities and departments, through a decree in response to a social emergency, we will now use it to restrict hospital spending,” the president said.

As soon as the new presidential decrees are approved, hospitals are supposed to take measures to restructure their administrative and management branches.

“We hope that hospitals will rethink their budgets, that instead of hiring expensive managers they will unite and use one manager for various hospitals, which will save on costs,” Uribe said.

The president hopes that taxes on leisure items will create more resources for the health sector.

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