JEDDAH, 19 September — The delay in salary payment at King Faisal Specialist Hospital and Research Center in Jeddah is likely to continue until the end of this year.
"The time between now and end of December remains critical. There may be a 5-7 day delay in salaries," a secret circular issued by the hospital said.
The circular, however, assured the hospital’s 1,800 employees that they would be paid their full salaries. "A sense of confidence and optimism has been conveyed on the payroll issue as well as future payrolls as they will be dealt with proactively," the circular said.
The hospital said the meeting of its executive management with Finance Minister Dr. Ibrahim Al-Assaf and a representative of the Royal Court had failed to solve the problem.
However, the hospital said the meeting, held on Saturday, was instrumental in ensuring adequate and stable cash flow from next year.
"Beginning next year, a more stable cash flow is expected, thereby assuring timely payroll disbursement," the circular said.
The hospital thanked the staff for their support and professionalism during the period of the salary crisis.
"We expect the current payroll situation be resolved no later than Sunday. In the year 2003, we feel confident that the hospital will continue to evolve as the premier health care organization in the Western Region maintaining the highest standard of patient care," the circular said.
The hospital had notified its staff of an indefinite delay in the payment of salaries for the month of August. The hospital, which requires SR22 million to pay its 1,800 employees, did not give a reason for the delay.
However, hospital authorities established an assistance cell to cover employees’ expenses for food and long-distance calls.
According to a hospital source, the Ministry of Finance and National Economy owes SR500 million to the hospital in unpaid bills.
The source also confirmed the administration’s decision to offer services only against cash payments and deny treatment to patients referred from other medical organizations.
KFSH is one of two hospitals with Joint Commission International Accreditation (JCIA) in Saudi Arabia. The award confirmed the hospital’s status as one of the very best in the world. It was founded two years ago.
In an attempt to generate cash flow, the hospital opened an after-hours private pay clinic and in-patient ward. This put the hospital, which was under the umbrella of the government for the last two years, in direct competition with commercial hospitals and clinics.