Health committee presses for modernisation as Okypy warns wage burden threatens autonomy

Members of the House health committee on Thursday called for further modernisation of public hospitals during discussions on the annual budget of the state health services organisation, Okypy, with political parties stressing that the sustainability of the general health system (Gesy) depends on a strong public sector.

Speaking after the session, Disy MP Charalambos Pazaros said the priority for the party was safeguarding Gesy’s future.

“Within this framework, the administrative and financial autonomy of public hospitals must be promoted,” he urged, demanding the action plan for autonomy be completed on schedule so as to improve patient care and avoid double costs for the public “through both contributions and state sponsorship”.

Referring to Okypy’s €780 million budget, he added that “every investment in health is an investment in the dignity of our citizens”.

Akel MP Marina Nikolaou raised concerns over declining real revenues despite what she described as a balanced budget, warning that any weakening of public hospitals would directly affect public health.

“Public hospitals must be the backbone of Gesy” she insisted, pointing to understaffing and the reduction of mental health services.

She criticised delays in developing oncology centres and transplant units as signs of insufficient planning.

Akel, she said, would support the budget only after receiving clear information on Okypy’s strategic planning, stressing that “without a specific plan and vision, autonomy becomes uncertain”.

Diko MP Chrysanthos Savvides acknowledged progress but said a burgeoning population had left hospitals struggling to cope.

“We had first-class hospitals and today, due to the population explosion, we have hospitals that cannot respond,” citing the management of both Larnaca and Paphos general hospital as an example.

During the same debate, Okypy’s administration pushed back against criticism, arguing that its path to autonomy is constrained less by inefficiency than by structural costs.

Appearing before the committee Okypy director-general Kypros Stavrides, said the organisation was implementing an agreed action plan with the finance ministry, while financial director, Roberto Karachannas, said payroll expenses absorbed 80 per cent of the budget.

He informed MPs that between 2019 and 2026 the wage bill rose by €163 million, despite staff numbers increasing by just 354, largely due to public sector pay rises, increments and benefits applied to both seconded civil servants and Okypy staff.

Karachannas also highlighted what he described as “unequal treatment” within the health insurance organisation (HIO), highlighting that Okypy covers the full cost of sick leave, exceeding €40 million, unlike private providers.

He added that public hospitals shoulder the cost of prolonged hospitalisations when compensation is reduced.

“These distortions must be corrected,” he affirmed, arguing that financial autonomy by the end of 2026 depends on resolving institutional and funding imbalances rather than further cuts to services.