Hadassah Opens Cyprus Medical Center Without Informing Israeli Regulators
Hadassah Medical Center opened a new facility in Limassol, Cyprus, without notifying Israeli regulators at the Ministries of Health and Finance, raising concerns amid ongoing state financial support.
The Hadassah Medical Center in Jerusalem has inaugurated a new medical facility in Limassol, Cyprus, as part of its international expansion strategy. However, it emerged that the hospital management undertook this move without notifying the two government bodies responsible for overseeing its financial and operational stability: the Ministry of Health and the Ministry of Finance. This comes despite Hadassah receiving substantial state support, and warnings last December from its management that cash flow difficulties could jeopardize its ability to pay employee salaries.
Responding to Calcalist's inquiry, the Ministry of Health stated that "the plan to establish a medical center in Cyprus has not yet been brought to the ministry's attention by Hadassah Hospital." The ministry added that any new hospital activity, particularly off-campus operations, "requires regulatory and economic review to ensure it does not compromise the availability of care, manpower, and the hospital's financial robustness." The Ministry of Finance similarly clarified that it was unaware of the project and was not consulted. The ministry recalled Hadassah's past financial crises, government support under the rescue agreement, and the hospital's recent claims of cash flow and budgetary strains.
Expanding Ventures in Cyprus
Hadassah strongly rejects claims that the venture endangers the hospital in Israel. "Hadassah has not invested a single shekel in the venture and is not financing it," management stated. According to the hospital, the project is a collaboration with a group of Cypriot entrepreneurs who are funding the center, while Hadassah provides professional consulting, medical expertise, and clinical standards. The Limassol facility, which began operating in the summer and was officially inaugurated on October 15, is an ambulatory center offering diagnostic services, examinations, specialist consultations, rehabilitation, and preventative medicine.
Plans do not end there: they include establishing a 46-bed hospital in Nicosia by 2027, alongside a larger project, the Hadassah Healthcare Park in Lakatamia, Nicosia. This will feature a 156-bed private hospital, a university medical institution, and student dormitories. According to the Cypriot Ministry of Finance, the planned investment in the Hadassah Healthcare Park is estimated at approximately 150 million euros. Hadassah emphasizes that it is not a partner in the funding.
Financial History and Oversight
Cyprus is not Hadassah's first international venture. Since 2018, a medical center bearing the name Hadassah Medical Moscow has operated in the Skolkovo complex in Moscow, presented as a branch of the Israeli hospital. The Cyprus project was first announced in November 2020, when a Cypriot company signed an agreement with Hadassah Medical Ltd, a subsidiary of the Hadassah Women's Zionist Organization of America, to establish a medical center in Nicosia and a diagnostic center in Limassol under the Hadassah brand.
The economic question goes beyond whether Hadassah transferred funds to the project. The Hadassah brand, its international reputation, professional knowledge, and above all, the time of its doctors are resources with significant economic value. The question remains what compensation the public hospital in Jerusalem receives for their use, whether it covers full costs, and who enjoys the revenues. Hadassah did not detail its compensation mechanism or the revenue-sharing model between the involved parties in its response.
These questions gain heightened importance given Hadassah's financial history. In 2014, the medical center fell into a severe crisis with a cumulative deficit of about 1.3 billion shekels, entering a stay of proceedings. A recovery plan was subsequently formulated, committing the state to approximately 1.4 billion shekels in aid over seven years. Even after the recovery agreement, questions persisted. In December 2025, Hadassah's management warned of difficulties in paying employee salaries, prompting the Ministry of Health and Ministry of Finance to place the hospital under close financial monitoring.
