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Cyprus’ Health Insurance Organization (HIO) is rejecting allegations of mismanagement and double payments within the national health system, insisting that the finances of the GeSY health fund remain fully protected despite reports suggesting otherwise.
In a lengthy statement issued Tuesday, the HIO responded to a recent investigative report by Kathimerini claiming that roughly €150 million in duplicate payments had been made to healthcare providers and suppliers of medical equipment.
The organization described the claims as “unfounded,” arguing that what appeared to be double payments was actually the result of a complex administrative process tied to how certain high-cost innovative medicines are purchased and reimbursed.
What the HIO says happened
According to the organization, the issue relates specifically to innovative drugs supplied mainly through named-patient requests, treatments often arranged individually for patients rather than through standard bulk distribution.
These medicines are purchased through public contracts handled by the Health Ministry’s Purchasing and Supplies Directorate, a system designed to secure lower prices and save money for the GeSY fund.
Hospitals receive the medicines without paying upfront. Each month, however, a reconciliation process takes place: the HIO reimburses hospitals for medicines administered to patients while simultaneously charging hospitals for the cost of the drugs they received.
The HIO says this system ensures both lower drug prices through state tenders and better accountability, since hospitals remain financially responsible for the medicines they use.
Why the payments piled up
The organization acknowledged that outstanding amounts accumulated during the early stages of the system, particularly after it assumed responsibility for named-patient requests in December 2024.
During that transition period, officials had to pull information from two separate databases and manually match records until systems were fully aligned, a process that delayed final calculations and settlements.
As a result, discrepancies appeared before the accounts were fully reconciled.
Money already being recovered
The HIO says corrective action is already underway.
According to the statement, more than half of the initially owed amount has already been recovered, while agreements with hospitals now allow the remaining balance to be gradually offset through monthly settlements until it is fully repaid.
“Funds fully safeguarded”
The organization stressed that GeSY’s financial resources are secure and denied accusations of waste or mismanagement.
It said it remains committed to transparent and responsible management of pharmaceutical spending and public funds, adding that all actions are being carried out according to established procedures and best practices to ensure patients continue receiving effective healthcare services.
The response comes amid growing public scrutiny over how billions of euros flowing through Cyprus’ national health system are monitored and managed, an issue likely to remain in the spotlight as debate over accountability continues.
