Building work on Reykjavik’s new Landspitali Hospital will likely start in the latter half of 2011 and continue until 2016, according to a statement of intent signed yesterday by representatives of the pension funds and the Icelandic government.
The statement calls for the construction to be financed by the pension funds and for the government to then rent the premises. Work will begin in 2010 for architects and engineers involved in designing and preparing the project; but the vast majority of jobs created will come in 2013-2015 when construction is in full swing.
The projected total construction cost is around ISK 33 billion (USD 264.6 million). The figure includes ISK 7 billion for various hospital equipment and ISK 11 billion for redesign and rebuilding of old hospital premises. The new hospital will cover some 66,000 square metres in three main sites.
Do we really need it? in this deep crisis, a brand new hospital and equipments??? using our pension fund? how do you gonna pay our pension later??
That was my initial thought. Then I thought that it might be a stimulous-type government intervention.
But, if it is, it is surely misplaced. The Icelandic healthcare system has been built on the back of a bubble. Government spending is unsustainable; as I see it, that’s part of the reason for the IMF loan – to spread the pain of the adjustment out over time rather take the hit now. But the adjustment still needs to be made.
That part’s easy. The government will pay the pension fund back, meaning that younger taxpayers will be picking up the tab.
and it might permite elders still in charge (with high positions) will live longer.
It seems Iceland already followed the pity way of another place which begins with the same initial :(
Don’t let them ruin you!
I read on some article once that Iceland is trying to start a trend of medical tourism in itself. Maybe that’s how they plan to pay for it.
THEY HAVE BEEN CLOSING UP MEDICAL SERVICES AND REDUCING THE BUDGET FOR HEALTH SYSTEM BY A 45%, AND NOW THEY SAY THEY ARE GOING TO BUILD THIS NICE HOSPITAL… IT WOULD BE BETTER IF THEY COULD MAKE WORK THOSE HOSPITALS THEY HAVE NOW…
Bromley86 said:
“The Icelandic healthcare system has been built on the back of a bubble.”
Where did you get that from?
Were not the the nuts and bolts of the health care system in place long before the bubble provided extra income for the State?
A fair point , and one that I can’t contradict because I’m not willing to review the Icelandic healthcare system over, say, the past 20 years.
So let’s just agree that the Icelandic government’s revenues have been inflated over the past 5-10 and that their future revenues are going to be much lower.
WELL, WHAT PEOPLE WANTS IS TO GET GOOD MEDICAL ATTENTION. AND THAT IS NOT REALLY HAPPENING NOW. MANY DOCTORS AND NURSES AND HOSPITAL WORKERS HAVE GONE UNEMPLOYED. THEY ARE SAVING IN EVERYTHING, EVEN IN OXYGEN THEY GIVE PEOPLE, AND ALL SORT OF MEDICINES…
Bromley86 said: “A fair point , and one that I can’t contradict because I’m not willing to review the Icelandic healthcare system over, say, the past 20 years.”
Rather It is a point that you can’t contradict because you would not be able yo find facts to support your nonsense claim :)
“So let’s just agree that the Icelandic government’s revenues have been inflated over the past 5-10 and that their future revenues are going to be much lower.”
State revenues have increased steadily in the last 5 years up to 2008.
Contrary to your claims, the brunt of Iceland’s health care facilities have been gradually built up over decades.
Before unrestricted money supply created the bubble, health care standards were very good.
Okay, it was a nonsense claim. This 2003 report shows that Iceland had poured money into health for quite some time.
http://www.euro.who.int/document/e82881.pdf
So chop out that sentence:
Do you know why the new hospital is being built?
You do understand that the hospital construction is not being funded by the State? rather it is being funded by the pension funds and will remain in the ownership of the pension funds.
“Do you know why the new hospital is being built?”
Because the hospital was not built in the boom years :)
From this document
http://www.haskolasjukrahus.is/nyrlandspitali/upload/files/kynningarfundir/21.april_2009/landspitali_report_03_04_09_(2).pdf
Hospitals are regarded as outdated and inefficient due to being located in different areas. Overall the hospital system as it exists does not fit in with present requirements and future demands.
>You do understand that the hospital construction is not being funded by the State?
Of course. They’re not doing it for free though. Is your point that this is win-win? That the pension funds get a stable, government-backed source of income and that the government get their hospital without having to borrow the money to pay for it upfront?
I suppose the question is should the government be borrowing money from secondary (and presumably more expensive) sources when it can’t borrow the money to self-finance elsewhere?