Santa Casa Agrees to Audit and Reopens with Government Help

07/24/2014 - 10h05

A day after closing its accident and emergency unit due to lack of resources, the Santa Casa Hospital of São Paulo accepted an offer of financial assistance from the state and will resume its normal services.

São Paulo's Oldest Hospital Suspends Accident and Emergency Services

The financial crisis at Latin America's largest philanthropic hospital has generated discussion about the administration of the hospital, and the support that the state provides for such institutions.

The Santa Casa shut its accident and emergency unit - which serves 1500 people every day - due to a debt of US$ 22.5 million with its suppliers.

But last night, the hospital management announced it would re-open its doors at 10pm, after the São Paulo state government decided to immediately free up US$ 1.4 million to pay the hospital's debts to its suppliers.

The government also committed to providing another US$ 21 million, to be paid in instalments.

However, David Uip, State Secretary for Health, said that the Santa Casa has administrative problems and made the new subsidies conditional upon an audit of the hospital.

After initially refusing the offer of US$ 1.3 million, claiming it was too little, hospital administrator Kalil Rocha Abdalla changed his mind, deciding to reopen and accept the government's conditions.

The Public Prosecutor's Office has announced an investigation into the disruption to hospital service, and said that the Santa Casa must take measures to ensure it does not happen again.

Translated by TOM GATEHOUSE

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