Riga, Nov 27 (LETA) - The state taking over the shares of Daugavpils Regional Hospital will give the medical institution an opportunity for closer cooperation with Riga clinical university hospitals, said Daugavpils Mayor Andrejs Elksnins (Sarauj, Latgale!/Let's Go, Latgale!).

According to the politician, the Cabinet of Ministers' decision to acquire a stake in the hospital and invest EUR 4.6 million in its share capital is a historic moment and a great day for Daugavpils and the entire Latgale region. "Our hospital will become the main and most important health care institution in the whole region for all Latgalians. The development of the hospital will be focused on improving the quality of its work - our common goal is to make it a clinical university hospital," the politician said.

According to him, immediately after the changes, closer cooperation with Riga clinical university hospitals will start in the areas of diagnostics, treatment protocols and development of scientific activities.

"The state must take over the management of regional hospitals. Otherwise, without direct state involvement, they are financed on a residual basis. Common criteria for quality and safety in healthcare are neglected in sustainable development plans," says the city mayor.

Thanks to the state's involvement, the hospital has new opportunities - to purchase new equipment, to participate in joint procurement of medicines with other public hospitals, to access European funds for construction and renovation, according to the Daugavpils mayor.

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

Such a measure is 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 government is taking over Daugavpils Regional Hospital at the request of the hospital's owners, as the hospital has run into severe financial trouble, the Health Ministry informs.

According to the government's decision, the Health Ministry will become the holder of the 80.5 percent stake in the hospital, the Daugavpils local government will hold 16.57 percent, Riga Stradins University (RSU) 1.52 percent, and Augsdaugava Municipality 1.33 percent in the financially ailing hospital.

The EUR 4.6 million provided by the government will be used to stabilize the hospital's finances, including to pay off outstanding debts to suppliers and cover short-term obligations.

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

Although the hospital's new administration has introduced significant cost saving measures, creditor liabilities and cash flow shortfalls still pose a high risk to the long-term sustainability of the hospital's operations. The state's participation will ensure the continuity and long-term stability and development of the hospital, the Health Ministry stresses.

Health Minister Hosam Abu Meri (New Unity) informed the Cabinet meeting that once the hospital is taken over, a new interim board will have to be appointed temporarily, and a decision will have to be taken on whether or not the hospital needs a supervisory board. He also noted that the executive board has one member, while the supervisory board has four.