Hospitals face legal action over €770M debt to drug wholesalers

The Ministry of Health failed Friday to reach a deal with drug wholesalers over unpaid hospital debts, which have ballooned to a record €770 million.

Wholesalers say they are frustrated by the lack of concrete proposals, while Health Minister Irena Hrstić insists patients will not be affected.

According to Jasminko Herceg of the Croatian Employers’ Association, 40 hospitals owing hundreds of millions for drugs and medical supplies could face lawsuits if they fail to pay by the end of September.

“We have sent 40 letters of demand asking hospitals to settle their debts. If payments are not made, the next step is enforcement requests and freezing bank accounts,” Herceg said.

Hrstić stressed that reliable medicine supplies remain a priority, but admitted hospitals cannot resolve debts without government support.

“We know how tough the final quarter of the year is financially, and we want to solve this problem as soon as possible,” she said.

Hospital debts are not new in Croatia’s healthcare system. Experts say rising operating costs and recent public-sector pay hikes—without matching budget increases—are major drivers.

Dražen Jurković, head of healthcare at the Croatian Employers’ Association, called for a systemic overhaul, including realistic budgets, better cost analyses, and new payment models for services.

Unions, however, argue mismanagement also plays a role. Radmila Belobraić Čahut accused hospitals of wasting funds on private law firms for unnecessary labor disputes, eating into medical budgets.

Despite the government taking control of all general hospitals two years ago to cut costs, the move has failed to keep them out of debt.