Philenews

CYprus State Health Services Organisation Faces Scrutiny Over Rising Costs

Published February 26, 2026, 14:13
CYprus State Health Services Organisation Faces Scrutiny Over Rising Costs

The Cyprus State Health Services Organisation (SHSO) is on the defensive amid criticism regarding its increasing expenditure, particularly concerning the salaries of public employees in state hospitals. During the discussion of its 2026 budget in Parliament, SHSO representatives presented data demonstrating a €163 million increase in salaries from 2019 to 2026, despite a slight increase in staff (from 7,089 to 7,443). This increase is mainly due to the increases, allowances, and Cost of Living Adjustments (COLA) granted to public employees, as well as the remuneration of SHSO employees based on public sector standards. Furthermore, the SHSO points out that, unlike the private sector, the cost of sick leave for its employees is fully covered by the Organisation, adding an additional €40 million to its budget. At the same time, the SHSO is obliged to maintain beds in operation throughout the year to meet the needs of patients, especially during the winter months, which does not apply to private hospitals. SHSO representatives argue that the OAY (Cyprus Organisation for State Health Services) reimburses the Organisation less in relation to the expenses it undertakes, especially in cases of prolonged hospitalisation. In addition, TAEPs (Accident and Emergency Departments) are often overwhelmed with elderly patients who are not served by the private sector, requiring longer hospital stays and financially burdening the SHSO. The SHSO has committed to implementing an action plan agreed with the Ministry of Finance to achieve financial autonomy from the state, however, rising costs and its special obligations create significant challenges in achieving this goal.