In the wake of the Bernard Madoff fraud, Hadassah Medical Organization in Jerusalem has made an across the board cut of employees salaries. The hospital claims that the cuts are a result of the economic crisis rather than the Madoff losses. Hadassah Medical Organization director general Prof. Shlomo Mor-Yosef will see his salary cut by the largest amount.
Hadassah also stressed that the cuts will be taken from employee's salaries as a loan to be returned when the hospital's financial situation stabilizes.
Hadassah Medical Organization is one of the few hospitals in Israel that is not owned by either the government or Clalit Health Services Ltd. but rather a private NGO - Hadassah, the Women's Zionist Organization of America. Consequently, the salaries of the hospital's employees are not part of the collective agreement governing most of the country's other hospitals.
Hadassah was one of the institutions most badly hurt by the Madoff fraud with two of the funds that it invests in suffering major exposure. Hadassah, the Women's Zionist Organization of America reported that it lost $90 million in the Madoff fraud.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2009
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