Treasury officials are angered over hearing the Clalit HMO is planning to dismiss 1,000 employees after Pesach, releasing a statement that it warned the HMO’s leaders that giving a large increase in salary to physicians would compel the organization to fire people in the future.

After years of discussion regarding the salaries of the HMO’s physicians, the organization acted on the recommendation of an independent mediator and granted thousands of physicians a 24% increase. Treasury officials warned such a move is irresponsible and fiscally unattainable.

The HMO has turned to the Finance Ministry to assist in funding the increase for its 33,000 physicians, which in 2009 will amount to NIS 400 million. The increase will significantly contribute to the expected deficit of NIS 775, which is compelling the HMO to fire 1,000 workers.

Finance Ministry officials have stated they do not plan to channel additional funds to the HMO, and the ministry will not take part in funding the pay increase. Some treasury higher-ups feel the formulation of a list of 1,000 employees slated for dismissal after Pesach is part of the HMO’s pressure tactic to compel the government to increase financing but it will not work they explain, stating no additional funds will be allocated to the HMO.

(Yechiel Spira – YWN Israel)