Meeting on the Institute Igalo, Abazović: Government seeks a long-term solution

Prime Minister Dritan Abazović hosted a meeting today with representatives of the Government, the Institute Dr. Simo Milošević, the Municipality of Herceg Novi, and the Union of Free Trade Unions of Montenegro. In addition to the Prime Minister, attendees included Deputy Prime Minister Vladimir Joković, Minister of Health Dragoslav Šćekić, Minister of Economic Development and Tourism Goran Đurović, Minister of Finance Aleksandar Damjanović, Health Fund Director Vuk Kadić, Acting Director of the Institute Dr. Simo Milošević Savo Marić, President of the Union of this institution Marija Obradović, President of the Municipal Assembly of Herceg Novi Ivan Otović, and President of the Union of Free Trade Unions of Montenegro Srđa Keković.

Prime Minister Abazović emphasized the need and the Government's willingness to find a long-term solution to the accumulated issues facing the Institute Igalo in accordance with the law. This includes addressing the ownership structure of the Institute, with an emphasis on the importance of the functioning of the Parliament of Montenegro in making these decisions.

Abazović reiterated the numerous steps the Government has taken to address the short-term situation and reiterated the Government's commitment to assisting the Institute's management in avoiding the loss of prominent markets, as long as such assistance is in line with the law.

Minister of Finance Damjanović stated that around 30% of the Institute's debt will soon be settled through an agreement expected next week. He also mentioned the recent completion of the Administrative Court's proceedings, which determined that the unlawful tender from 2020 must be resumed until a final outcome is reached.

It was concluded that the Institute cannot continue to operate in the same way as before, as it is unsustainable. In this context, the following conclusions were offered:

1. In the proposal for the Health Fund's budget for the next year, consider additional price increases that the Fund pays to the Institute for its insured persons.
2. The Ministry of Health, Ministry of Finance, and Institute's union representatives should conclude negotiations on a new collective agreement.
3. Express the intention to repurchase shares from minority shareholders and consider the prerequisites for such an intention.
4. Explore possibilities for additional financial injections into the Institute in accordance with the law to ensure its continued operation.
5. The Government supports the Institute in finding new sources of revenue, such as contracts with foreign groups coming for medical treatment.

The Prime Minister concluded the two-hour meeting by emphasizing that these conclusions aim to protect Montenegro's health tourism and its insured persons.