Landspítali cannot withstand further cuts, CEO warns

Landspítali, the university hospital, has not been fully compensated for agreed pay rises and has not received payment for all services covered by its funding agreement, chief executive Runólfur Pálsson says. He warned in an article published by mbl.is that the hospital cannot absorb further cuts and still fulfil its role.

In an article in Spítalapúlsinum, Pálsson criticised the hospital’s funding and the allocation of money across the health system. He said his concerns about Landspítali’s financial position had grown in recent months, particularly after the 2027 budget bill was presented.

Pálsson called for a comparison between funding for Landspítali and payments under Iceland Health Insurance’s contracts with specialist doctors, especially in recent years. He said the comparison raised questions about how health-service funding was being managed.

He said state spending on contracts with self-employed providers had increased and that the trend was not being adequately managed. He called for a review of how health services are organised and how public funds are spent.

Pálsson welcomed construction at Hringbraut but said the new buildings would provide only part of the hospital’s needs. Further construction, needed to provide enough beds and facilities for day and outpatient services, has not yet been approved.

He said demand for the hospital’s services would grow in coming years without a similar increase in staffing, making it important to use new technology and artificial intelligence to meet that need.