Icelandic Confederation of Labor criticizes proposed nursing home funding changes by Minister of Health

The Icelandic Confederation of Labor has strongly criticized a recent legislative change proposed by the Minister of Health regarding the management of nursing home properties. The Confederation describes the amendment as an attack on the welfare system.

Currently, the establishment of nursing homes has been the responsibility of the public sector, with municipalities contributing 15% of the funding and the state covering the remainder. The new proposal aims to remove this 15% obligation from municipalities, intending to facilitate development and ensure adequate maintenance of nursing homes. This initiative stems from a report created in collaboration with the Ministry of Finance and has been opened for consultation where private welfare service firms have expressed their support.

However, the Confederation has voiced significant concerns over the proposal, arguing that it undermines the welfare system. Hjördís Þóra Sigurþórsdóttir, chair of the health committee within the Confederation, states that the trend indicates a move towards increased privatization of services that should remain public. She cites similar developments in countries like Sweden and Ireland, suggesting these led to unfavorable outcomes.

Hjördís warns that funds leaving the system do not benefit services for the elderly. Instead, they enrich those managing the operations, raising fears of a future where public resources are exploited for profit. Many nursing homes are currently privately operated but located in public buildings, and Hjördís highlights concerns over cost-saving measures that lead to lower wages for staff compared to public sector jobs.