Landspítali chief urges caution over private hospital plan
Tuesday 27th October 2026 on 12:01 in
Iceland
The director of Landspítali has called for careful scrutiny of plans for a privately run hospital in a former Landsvirkjun building on Háaleitisbraut, saying the proposal could affect other healthcare services. Morgunblaðið reported Tuesday that the hospital, Litli spítalinn, has applied to Iceland Health Insurance for a contract to run a minor-injury unit.
Runólfur Pálsson, Landspítali’s director, said the proposal needed to be assessed for its merits and its impact on other services. He said the plan appeared to cover more than a minor-injury unit and could provide an opportunity to review emergency care in the capital region. Efficiency, cost-effectiveness and Landspítali’s role in training were also important considerations, he said.
Iceland Health Insurance is reviewing the proposed contract, but Runólfur said he was not aware that an agreement had been reached. He also said he did not view Litli spítalinn as a direct competitor, though some work now handled by Landspítali’s emergency department could potentially be provided by the new hospital.
Runólfur said the main pressure on Landspítali’s emergency department came from a shortage of beds for acutely ill patients. A lack of nursing-care places had prevented some patients from leaving hospital after treatment, contributing to overcrowding. He said the situation was currently better than it had often been in recent years and that the hospital was managing minor-injury cases reasonably well.
He said a new provider could compete for staff, although competition for healthcare workers was already present. Health Minister Alma Möller could not be reached for comment.