Health Minister Neophytos Charalambides has sought to reassure MPs that the State Health Services Organisation (OKYpY) is not at risk of bankruptcy despite ongoing financial challenges.
Speaking during discussions on the Ministry of Health budget for 2027 before the House Finance Committee, the minister said the organisation currently holds financial reserves of approximately €300 million.
Responding to questions about OKYpY's financial sustainability, Charalambides said those reserves would allow the organisation to continue operating even if deficits persist for several years.
He stressed, however, that the government's objective is not to rely on reserves but to achieve a balance between revenue and expenditure.
According to the minister, a study is currently under way to identify the measures required to make OKYpY financially sustainable. A joint working group is also examining the organisation's finances and considering steps to increase revenue and reduce expenditure ahead of the expiry of state financial support at the end of the year.
Public hospitals and complex cases
Charalambides also addressed the way public hospitals are reimbursed by the Health Insurance Organisation (HIO).
He said efforts are being made to revise the compensation model for OKYpY, arguing that public hospitals frequently treat more complex cases and older patients who require longer hospital stays.
As a result, patient discharge times are often longer and beds in public hospitals become available more slowly than in private facilities.
Health budget reaches €1.4bn
The 2027 Health Ministry budget amounts to €1.4 billion, representing an increase of €47.5 million compared with 2026.
The largest share of the increase, €38 million, will go towards the government's contribution to **GESY, bringing total state funding for the health scheme to €908 million.
The budget also includes:
- €107.5 million for public health and services of general interest provided by OKYpY.
- €54.7 million for development projects planned by the organisation during 2027.
