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.



Baghdad Urges Washington to Prevent ‘Imminent’ Israeli Strikes

Sudani visiting a market in Baghdad on Thursday (Government media)
Sudani visiting a market in Baghdad on Thursday (Government media)
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Baghdad Urges Washington to Prevent ‘Imminent’ Israeli Strikes

Sudani visiting a market in Baghdad on Thursday (Government media)
Sudani visiting a market in Baghdad on Thursday (Government media)

Iraqi Prime Minister Mohammed Shia Al-Sudani on Thursday called on major powers to “exert greater efforts to end the war in Palestine and Lebanon.” Meanwhile, an Iraqi government official urged the United States to “prevent any attacks on the country,” referring to potential Israeli strikes.
During a phone conversation with Russian President Vladimir Putin, Al-Sudani stressed the importance of ensuring the conflict does not escalate “to a level that threatens regional and global stability.”
The Iraqi prime minister’s appeal comes amid reports suggesting that Israel may launch strikes on Iraq in retaliation for attacks by Iraqi armed factions targeting Israeli positions.
The Iraqi government is striving to assert its exclusive authority over weapons and war-related decisions. However, armed factions affiliated with the Axis of Resistance openly claim responsibility for near-daily rocket attacks on Israel. This has provided Israel with a justification for potentially targeting Iraqi territory, especially after it filed a complaint with the UN Security Council against six Iraqi factions and held Baghdad responsible for the attacks.
These factions have also openly declared their involvement in the ongoing conflict with Israel in Lebanon and Gaza. The Iraqi government has been unable to take decisive action to halt the activities of these factions, which many believe could soon expose Iraq to an Israeli strike.
According to media reports, Washington has warned Baghdad that Israeli airstrikes on Iraq are “imminent” unless the Iraqi government curtails attacks by Iranian-backed factions on Israel. The Times of Israel cited sources indicating that the United States has “exhausted all means of pressure on Israel” and urged Iraq to act swiftly to prevent such attacks.
Despite repeated assurances from the Iraqi government—including its recent adoption of 12 measures by the National Security Council to counter Israeli threats and complaints—the situation remains tense. These measures include monitoring Iraq’s western borders, preventing factions from launching attacks, and maintaining Iraq’s neutrality in the ongoing conflict.
On Wednesday, Abu Hussein Al-Hamidawi, Secretary-General of Kata’ib Hezbollah, made a striking statement on the role of resistance factions in the war and their commitment to the Unity of Fronts doctrine frequently mentioned by Axis of Resistance groups.
In an interview published by the faction’s media arm, Al-Hamidawi said: “The continuity of the Unity of Fronts concept depends on what the Lebanese Hezbollah decides.”
Al-Hamidawi also emphasized that resistance factions are constantly coordinating internally and with external partners such as Hezbollah, the Houthis, and Palestinian resistance leaders.
“We aim to ensure that the Palestinian people are not left alone and that the Unity of Fronts remains intact,” he stated.
Fadi Al-Shammari, a political advisor to Sudani, reiterated that Israel’s threats “are not new,” citing the recent complaint filed by Israel with the UN Security Council as part of its pattern of issuing threats.
In media statements, Al-Shammari reaffirmed the Iraqi government’s long-standing position: “The decision of war and peace lies solely with the Iraqi government.”
He noted that the factions’ attacks are being launched from areas outside Iraq’s borders, specifically from Syria. However, he stressed that the Iraqi government is working through its security and military agencies to prevent Iraq from becoming a battlefield for external or internal parties.
Al-Shammari also called on the United States to fulfill its responsibilities under the Strategic Framework Agreement and security pact with Iraq, emphasizing the need to deter and respond to any external attacks that threaten Iraq’s internal security.