Lebanon's Dollar Crisis Begins to Affect the Health Sector

People wearing face masks walk outside Rafik Hariri hospital, where Lebanon's first coronavirus case is being quarantined, in Beirut, Lebanon February 21, 2020. REUTERS/Mohamed Azakir
People wearing face masks walk outside Rafik Hariri hospital, where Lebanon's first coronavirus case is being quarantined, in Beirut, Lebanon February 21, 2020. REUTERS/Mohamed Azakir
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Lebanon's Dollar Crisis Begins to Affect the Health Sector

People wearing face masks walk outside Rafik Hariri hospital, where Lebanon's first coronavirus case is being quarantined, in Beirut, Lebanon February 21, 2020. REUTERS/Mohamed Azakir
People wearing face masks walk outside Rafik Hariri hospital, where Lebanon's first coronavirus case is being quarantined, in Beirut, Lebanon February 21, 2020. REUTERS/Mohamed Azakir

The dollar crisis is now affecting the health sector in Lebanon, amid talk about some private hospitals changing their fees such that their services are priced based on an adjusted exchange rate, falling between the official and black market rate. A dollar will be priced 3,950 Lebanese pounds. This comes at a time when the health sector as a whole is facing a real crisis, as the Central Bank has decided to lift its subsidy on medicines, which are imported at the official rate.

The head of the Syndicate of Private Hospital Owners, Suleiman Haroun, denied the claims that private hospitals will adopt a new rate. In an interview with Asharq Al-Awsat, he says: “One hospital set the fee based on a non-official rate, but for patients who are not insured by any government agency, meaning that it does not affect health guarantors.” Rather, it concerns insurance companies that have agreed on terms with the hospital.”

The Caretaker Minister of Health Hamad Hassan previously confirmed that increasing hospital fees and the price of medicine is not on the table, so long as the official dollar exchange rate remains unchanged. After a meeting with the social security providers and private hospitals, he pointed out that “increasing hospital fees remains subject to the official exchange rate set by the Central Bank, and measures will be taken against those who act otherwise."

Concerning citizens’ complaints about being forced to pay the difference in hospital fees imposed on social security providers, based on an exchange rate for the dollar reaching 8,000 pounds in some cases, Haroun explained that this only applies to medical supplies because the Central bank supports 85 percent its price, and social security has not changed the price.

Director-General of the National Social Security Fund Muhammad Karaki also confirms that citizens are paying the difference in price imposed on social security providers, pointing out that social security “is bound by an official fee set by a specialized committee based on clear mechanisms, and these fees are priced in Lebanese pounds.”

In an interview with Asharq Al-Awsat, Karaki pointed out: “Recently, many hospitals have violated the regulations on fees, especially concerning the fees for coronavirus treatment and medical supplies. Citizens are also paying for medical supplies that are not listed by social security at the black market rate.”

He adds that the difference is not grave at the moment. However, he points out that an eventual lifting of subsidies would lead to medical disaster, warning against taking such a step before finding mechanisms that guarantee citizens’ health.



Lebanon to Seek US Guarantees in Response to Proposal

US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)
US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)
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Lebanon to Seek US Guarantees in Response to Proposal

US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)
US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)

Lebanon plans to seek assurances from Washington on the implementation of any future deal involving Hezbollah’s disarmament, Lebanese political sources told Asharq Al-Awsat, ahead of a visit by US envoy to Beirut Tom Barrack early next week.

The question of US guarantees tops Lebanon’s concerns, which are shared not only by Hezbollah but also by the Lebanese state, the sources said.

The issue is central to the discussions of a tripartite Lebanese committee that includes representatives of President Joseph Aoun, Parliament Speaker Nabih Berri, Prime Minister Nawaf Salam, meeting regularly at the presidential palace to draft a unified response to a US proposal.

In parallel, the Quintet group - comprising the US, France, Saudi Arabia, Egypt, and Qatar - met at the US embassy in Beirut to discuss the situation, local media reported.

Saudi Ambassador Walid Bukhari was absent from the talks, reportedly due to travel.

According to the sources, Barrack’s visit is not solely to receive Lebanon’s response to the US proposal, but also to hold further consultations with the country’s top leaders.

The US paper outlines a phased plan prioritizing the disarmament of Hezbollah, delineation of Lebanon’s land border with Syria, and the implementation of long-delayed financial, economic, and administrative reforms.

“Lebanon views the proposal as the basis for negotiations, not a surrender document,” the sources said, noting that the primary demand to be raised will be related to binding US guarantees.

They cited the bitter experience that followed the previous ceasefire deal, after which Israel allegedly continued attacks, held on to five disputed points in southern Lebanon, and hindered the return of displaced residents—all while international aid for reconstruction failed to materialize.

“The committee is meeting almost daily,” one source said. “There is consensus on the need for an Israeli withdrawal from occupied points and an end to violations as a prerequisite for any deal. These are sovereign principles Lebanon will not abandon.”

Despite Hezbollah’s public resistance to disarmament, sources described the group’s current stance as “constructive.”

Hezbollah is said to be engaging in discussions through the state’s official channels, with party officials expressing concern over the absence of international guarantees and the risk of being sidelined politically once it gives up its arms.

“There are internal concerns that Hezbollah could be pushed out of political life, especially after talks around electoral law reforms,” one source said.

These fears are compounded by delays in international aid, reconstruction plans, and continued Israeli violations—issues that have persisted since the ceasefire in November.

On Wednesday night, Hezbollah Secretary-General Naim Qassem reiterated the party’s rejection of “any threat of force or foreign meddling,” and insisted that Hezbollah would not “surrender land or weapons to the Israeli enemy” or compromise on its rights.

Qassem also accused Israel of violating the ceasefire more than 3,700 times, while the international community “watches silently, calling only for concessions.” He said Hezbollah would continue to resist, as it has done for decades.

A senior Hezbollah lawmaker said the group remains open to cooperating on strengthening the Lebanese state and restoring its authority across the country—provided Israel withdraws from disputed southern points and halts its ongoing violations.

MP Ali Fayyad, a member of Hezbollah’s parliamentary bloc, said the group “has consistently shown a positive willingness to cooperate in all matters related to state-building, institutional reform, and improving operational capacities to help achieve the desired stability.”

Speaking on Thursday, Fayyad added: “This includes supporting the state in extending its authority over all Lebanese territory and enabling it to carry out all its duties—chief among them the protection and defense of the people and sovereignty.” However, he warned, “None of this will be possible unless national efforts unite to achieve a key condition: Israel must withdraw from the five occupied positions it still holds, end its continued violations, and respect Lebanese sovereignty.”

Fayyad’s comments came amid a broader debate on the future of Hezbollah’s weapons and its role within the state.

Opposition lawmaker Fadi Karam from the Lebanese Forces party slammed Hezbollah’s rhetoric in a post on X.

Addressing Hezbollah’s Qassem, he wrote: “Your weapons have destroyed Lebanon and continue to give Israel an excuse to remain on our land. You’ve tied Lebanon to Iran. And now you claim that handing over your weapons to the Lebanese Army means handing them to Israel? That’s delusional and only exposes Lebanon to new wars.”

The statements reflect widening divisions over Hezbollah’s future role and the path toward national sovereignty and stability, as Lebanon grapples with US-led proposals aimed at de-escalating tensions and launching long-delayed reforms.