RIGA, Jan 17 (LETA) - The operation of Daugavpils Regional Hospital is stable, but its management model needs to be reviewed for development, this is how Health Minister Hosams Abu Meri (New Unity) assessed the economic activity of the institution after his regional visit.

The Minister and Deputy State Secretary of the Ministry of Health Boris Knigins, as a representative of the shareholder, met with the hospital's board and council to hear a report from senior management on the current economic situation and the vision for the hospital's development.

Assessing the hospital's operational management to date, the Ministry representatives concluded that the capacity of the operational management team needed to be strengthened.

At the same time, the Ministry concluded that the council did not provide convincing quality and effective support and transparent input.

The Ministry also informs that a review of the accountability of previous officials will be carried out in the near future in line with the mandate given by the Government last year.

According to the Ministry's assessment, the current hospital board has managed to stabilize the financial situation and expects to close 2025 without losses. A significant step towards stabilizing the financial situation is the contribution of EUR 4.6 million from the state budget, which has resulted in the hospital paying off its debts for 2022 and 2023.

Abu Meri believes that the board has made significant progress during the year in reviewing the hospital's organization of work and stabilizing the financial situation. He also acknowledges that the board has a well-founded "road map" of the tasks to be carried out in the near future, together with a vision for long-term development.

The hospital management presented to the ministry representatives the hospital's budget situation, the work done with creditors and the main priorities to strengthen the transparent and efficient functioning of the hospital, which would allow to settle the accounts with creditors already in 2025 and to finish the year without losses.

The hospital's director Edgars Labsvirs stressed that the priorities for this year are the implementation of the financial and record-keeping system, work on the transparency of the salary policy and the establishment of the internal control audit system, which will provide the basis for the successful implementation of the European Union fund projects and the efficient management of the hospital's operational work.

As reported, to ensure an uninterrupted provision of healthcare services to residents of Latvia's eastern region of Latgale, the government in November took over 80.5 percent of shares in Daugavpils Regional Hospital and invested EUR 4.6 million to stabilize the hospital's finances.

Such a measure was necessary to to guarantee access to healthcare in the region, improve governance and promote the strategic role of the hospital in the context of both national security and crisis management, given the geopolitical situation.

The Health Ministry has become the holder of the 80.5 percent stake in the hospital, the Daugavpils local government holds 16.57 percent, Riga Stradins University (RSU) 1.52 percent, and Augsdaugava Municipality 1.33 percent in hospital.

Daugavpils Regional Hospital closed 2023 with a loss of EUR 5.8 million, according to the Health Ministry.