coffee for NIS 19; The Knesset Health Committee discusses food prices in hospitals

The health committee discussed today (Monday) the lack of control over the prices of food sold in hospital stores. The chairman of the committee, MK Yoni Meshariki (Shas) emphasized that “this is a captive audience, which should not be robbed for basic products such as coffee and a bottle of water. The franchisee can profit from the prices of the luxury products.”

During the discussion, Meshiriki complained about the conduct of the Ministry of Economy, and claimed that this is the responsibility of the Consumer Protection Authority, and demanded to receive within a month a detailed position from the Ministry of Economy regarding the supervision of food products in hospitals: is there a place for such supervision, which products and in what manner can be supervised.

In addition, he asked Shriki from the Ministry of Health to conduct a comprehensive inspection of all hospitals to determine which food products among the products sold in the hospital can be designated as controlled products. According to the results of the inspection – the Ministry of Health was asked to guide the hospitals, to determine in the terms of the tender that there will be a number of basic food products that will be marketed at a fixed and reduced price to the public that comes to the hospitals. Meshariki praised the supervision carried out by Kalalit Health Services in the hospitals they own, and that the supervision actions did not harm the hospitals’ ability to contract with franchisees.

The initiators of the discussion, MK Avraham Bezalel (Shas), Iman Khatib Yassin (Ram) and Moshe Pesal (Likud) emphasized that today, there is no intervention by the Ministry of Health or the Competition Authority in the pricing of products sold in hospitals. The result is that coffee, pastry or any other product sold in hospital cafeterias is significantly more expensive than a normal place. For example, a small iced coffee drink at Sheba Hospital costs 19 NIS, a small reverse coffee at Assaf Harofeh Hospital costs 13 NIS.

Unlike other places, the buyers at the coffee stands in the hospitals are a captive audience, they usually have no other place where they can purchase. It is within the power of the hospitals to place the issue of low pricing as a condition in the tender, but in the past it was claimed that the hospitals’ profit from the franchisee is a key consideration during the tender, which makes it difficult for the franchisee to sell the supplies at a low price. The Ministry of Health stated in the past that it would consider intervening in the control of prices in hospitals and not only in government institutions, but in practice nothing was done.

Dr. Dalia Shilian, Chief Economist of the Consumer Protection Authority, suggested that the terms of the tender should include a threshold price for a number of products, while her friend Sharlo, who also heads the supervision of hospitalization at the Ministry of Health, acknowledged the problem, and argued that it is necessary to define what the basic products are that can be supervised such as Water and coffee. “Obviously, if there is an expensive bonboneira, there can be no limit on its price,” he said, emphasizing that such supervision requires legislation initiated by the Ministry of Economy. Etti Fitosi, head of the government medical centers division at the ministry, stated that hospitals do not always find suitable franchisees, and therefore electrical devices are placed for food sellers.

Shlomi Grossman, head of the purchasing department at “Kallit”, told about a uniform tender for the medical centers, which includes a monitored price list, and the monitoring does not cause franchisees to flee, while Yoav Sibor, health officer in the budget department, warned that increased monitoring of prices could harm revenues, and in any case, financial stability and the budgetary balance of the hospitals.