In order to prevent financial problems in Daugavpils Regional Hospital, the State, through the Ministry of Health (VM), has acquired the majority of the capital shares and has thus taken over the hospital under its supervision, Health Ministry said in a statement on November 26.
The State plans to invest more than EUR 4.6 million in the hospital’s share capital. This is foreseen in a draft order approved by the Government on Tuesday, November 26.
The draft order provides for the State to acquire a stake in “Daugavpils Regional Hospital” Ltd by accepting 5,841,391 capital shares owned by the Daugavpils City Municipality and 583,337 capital shares owned by the Augšdaugava Municipality, for free. The Health Ministry has been appointed as the holder of the State’s shares.
The State participation in Daugavpils Regional Hospital is being implemented at the request of the owners of the hospital, as the hospital is facing severe financial problems.
The Government also approved a plan to invest €4,619,668 in the hospital’s share capital this year. The capital injections will be used to stabilize the hospital’s finances, including the repayment of debts to suppliers and short-term liabilities. After the financial injection, the Daugavpils Regional Hospital will have a share capital of €13,705,564.
In 2023, Daugavpils Regional Hospital’s losses amounted to €5.8 million.
Following the acceptance of the Daugavpils and Augšdaugava municipalities’ shares and the injection of state funding, the VM will become the overwhelming majority shareholder in the hospital, holding 11,044,396 or 80.58% of the capital shares worth €11,044,396. The former largest shareholder, the Daugavpils State Municipality, will retain a 16.57% stake worth €2,271,474. The municipality of Augšdaugava will hold 1.33% of the capital shares worth €181,718, while Riga Stradiņš University will hold 1.52% of the capital shares worth €207,976.
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