Rio’s Healthcare Sector under Financial Crisis

Rio’s Healthcare Sector under Financial Crisis

A cash crisis resulted in the closure of a minimum of 10 hospitals and 12 outpatient facilities in the state of Rio de Janeiro. The governor announced a healthcare emergency on December 24, 2015 due to a shortfall in budget. As a result, the state failed to make payments to contractual organizations, which run public hospitals. The incidence has occurred just eight months prior the commencement of the 2016 Olympic Games in the city of Rio de Janiero.

The state has been provided emergency supplies and finance on December 25, 2015 to ease its financial crisis. The state received 300,000 medical items from the federal government and a loan of 25 million reals (approximately US$6.25 million), to make the salary payment of medical staff, has been offered by the city of Rio.

"We hope to be able to normalize payments by the end of the week," said Luiz Fernando Pezao, the governor of the state of Rio. Financial assistance from the Rio de Janiero city is expected to be as high as 100 million reals (approximately US$25 million). The city’s assistance enabled re-opening of two hospitals in near Realengo and Campo Grande.

The financial crisis of the state has been a blamed on the reduction the prices of oil, which was the primary source of revenue for the state. The governor has reported a 16% decline in the tax collection of 2015. This reduction automatically translates into a reduction of funds allocated for the healthcare sector.



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