Official Statement of University Hospital “Kaneff” AD
Regarding the information released today about a pre-trial proceeding for mismanagement initiated against seven state hospitals, including University Hospital “Kaneff” AD, and the claim that the institution is “on the verge of bankruptcy”
In December 2017, the Executive Agency “Medical Audit” under the Ministry of Health conducted an extraordinary inspection at University Hospital “Kaneff” AD, Ruse.
As of now, no other hospital facility operates within the premises of University Hospital “Kaneff” AD providing identical medical services as the state hospital. According to the inspection by the Medical Audit Agency, the contracts signed by the Executive Director of the hospital are within the scope of his authorized powers.
At the time of the inspection, no duplication of activities was found between the hospital and SBALC “Medica Cor” EAD in the field of interventional cardiology, thus complying with the requirements of Art. 9, para. 6 of the Medical Institutions Act. The inspection also confirmed that there is no duplication of services with SBALFRM “Medica” OOD in the area of physical medicine and rehabilitation, again in full compliance with the law.
Since the beginning of the current management’s term in March 2015, steps have been taken to terminate existing contractual relations with private healthcare providers operating within the premises of the state hospital. All competent authorities have been duly notified, and assistance has been requested to support the contract terminations and vacating of the premises.
These efforts include two legal cases. The first was initiated in 2015, resulting in a ruling by the Ruse District Court ordering SBALFRM “Medica” OOD to return the property it occupied—namely, the seventh floor of the hospital’s Surgical Block—to MBAL-Ruse AD (as it was then known).
The second case, also initiated in 2015, concerned the ground floor of University Hospital “Kaneff,” where the hospice of SBALFRM “Medica” OOD was located. This case also concluded in favor of Kaneff Hospital, and the private entity vacated the premises on October 17, 2016. The space is now designated to house the renovated Department of Transfusion Hematology.
As of July 1, 2017, SBALC “Medica Cor” no longer operates on the premises of the state hospital.
It should be noted that the Board of Directors of University Hospital “Kaneff” had decided to terminate the contract with SBALC “Medica Cor” early, with a three-month written notice. However, due to public pressure in Ruse, an agreement was signed on January 20, 2017, whereby the private cardiology clinic committed to vacating the premises by July 1, 2017.
Regarding the claim that University Hospital “Kaneff” AD is “on the verge of bankruptcy,” we state the following:
According to the Commercial Act, this would imply conditions related to insolvency, over-indebtedness, or both—criteria for initiating insolvency proceedings. We can confidently state that, if this is the intended implication, the company is in sound financial and economic condition.
This is clearly demonstrated in the latest financial and economic report for 2017:
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University Hospital “Kaneff” AD ended the 2017 financial year with a positive result
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Revenues increased compared to 2016
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There are no outstanding obligations to employees, the National Social Security Institute, or the Tax Administration
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The trend of reducing overall liabilities, especially overdue payments to suppliers, continued compared to 2016
Since the beginning of its mandate, the current management of University Hospital “Kaneff” has consistently operated in compliance with the law and in the best interest of the hospital.