A Health Ministry work group will draft a system for hospital debt management by the end of the month, mediapool.bg reported.

Finance Minister Plamen Oresharski met Healthcare Minister Radoslav Gaidarski to discuss the issue. State-run hospitals accumulated significant debts for medical supplies. To deal with the issue Gaidarski dismissed the heads of several major hospitals.

Hospital debts total 72 million leva, Health Ministry data shows. From the total, hospitals owe 41 million leva for medical supplies.

The work group would look for ways to delay payments, since budget 2006 does not allocate funds for hospital debts.

Gaidarski said after the Health Ministry imposed stricter fiscal policies hospitals ceased accumulating debts.

In the end of 2005 the Cabinet allocated additional 80 million leva to cover part of the debt.

By March 15 each state-run hospital needs to present a financial plan for 2006. Each institution also needs to list its priorities for the year. If financial plans are not followed, hospital managers will pay fines totaling 80 per cent of their quarter-annual wages, Gaidarski said.