"We have been holding cooperation talks with the government and the Ministry of Social Affairs since last summer to discuss a reform that would merge the state-owned North Estonia Medical Center (PERH) and Tallinn's hospitals, with the goal of having two medical campuses in Tallinn over the next 10 years — one in Mustamäe and a new campus planned for Lasnamäe," Ossinovski said at a city government press conference on Tuesday.

The government has already issued an order outlining the creation of a unified hospital, Ossinovski added.

"The main obstacle has, of course, been financing the construction of the new medical campus. In January, I proposed various financing schemes to Prime Minister Kristen Michal to find a way forward," the mayor said.

Ossinovski acknowledged that recent changes in the government have delayed the process of making the necessary decisions.

"However, this city government's mandate will end in October following the regular local elections, so we must make decisions regarding the Tallinn hospital reform by this summer at the latest. The final city council meeting where we will discuss the plan to merge Tallinn's hospitals is scheduled for June 12. If the state wants to proceed with merging Tallinn's hospitals together with PERH, they have only a few weeks to decide, as we need to submit the draft proposals to the council shortly," Ossinovski said.

The mayor noted that he had also sent a letter to Michal on Tuesday. "We expect the government's decision by May 16 on whether the state is interested in undertaking this decade-long reform with us and jointly investing in the infrastructure. If the state opts out, the city will proceed with merging its hospitals independently," Ossinovski stated.

"Our preference is to invest together with the state, but the state has the right to step aside. Due to the political cycle in the capital, we no longer have time for delays," the mayor said.

"Significant work has been done in recent months to prepare the project," Ossinovski added.

He also expressed regret that the Estonian Association of Architects has felt its input on the hospital's preliminary design has not been sufficiently considered. "We will continue consultations with the association and will try to find collaborative solutions," the mayor said.

Investment need grows to €2 billion

Deputy Mayor Karl Sander Kase (Isamaa) added that the city will meet with hospital directors next week. "Our train is moving forward, but we are still keeping the window open in case the state wishes to join," Kase said.

"We have also considered renovating the existing hospital buildings alongside constructing a new facility. The current hospital buildings are 50 years old, and people today have new expectations — these investments are necessary. When the Tallinn Hospital project began in 2021, the estimated investment was €520 million; now we are talking about roughly €1 billion. The temporary VAT increase has become permanent, which has also raised the hospital's cost. The longer we postpone a decision, the higher the cost will become. However, the need for hospital reform will not disappear," Kase explained.

Deputy Mayor Pärtel Peeter Pere, who represents the prime minister's party, said the coalition agreement to merge Tallinn's hospitals is being honored by the city's ruling parties.

"It is good that the city has reached a point where it is not simply pointing fingers at the state and demanding money but is instead moving forward with the hospital merger," Pere said. "Opportunities for cooperation with the state will arise in the future. First come the reforms, then the funding for concrete and bells and whistles. Everything in its own time," he added.

The city has proposed to the prime minister and the minister responsible for the sector that the costs of building the hospital be divided proportionally, with 60 percent covered by the state and 40 percent by the city. On Monday, it became clear that the government still could not decide whether to fund the construction of Tallinn Hospital and postponed the discussion once again.

--

Follow ERR News on Facebook and Twitter and never miss an update!