Public Health Crisis Looms: Fenats Warns Kast’s Budget Cuts Could Deplete Hospital Resources by August

Original article: “Crisis terminal” en salud pública: Fenats advierte que recorte de Kast puede dejar hospitales sin recursos en agosto

August marks a critical deadline as warned by the National Fenats (National Confederation of Health Workers), stating that by then, Chilean hospitals could run out of financial resources to care for more than 15 million people.

Tensions between healthcare workers and the government of José Antonio Kast have escalated due to the implementation of a budget cut that Emerson Berríos, the president of the confederation, describes as the onset of a “terminal crisis” in the public healthcare system.

The union leader made it clear: “This measure is categorized as extremely serious and irresponsible on the part of the government,” as he outright dismissed the official narrative that attempts to downplay the severity of the spending cuts.

According to the union leader, the challenges faced daily by medical facilities have shifted from a pessimistic projection to a critical reality.

His analysis indicates that the budget reduction ordered by the Ministry of Finance, led by Jorge Quirpz, will have profound impacts. “We are not facing a mere accounting adjustment, but a political decision that will directly affect the capacity of public health services,” Berríos asserted, accusing the government of pushing the healthcare network into a critical scenario that endangers the most vulnerable populations.

The central issue lies in the enactment of Decree 333, which imposes a cut of 413 billion pesos to the sector, impacting hospitals, Fonasa, and institutional services across the board. “When health resources are cut, it’s not bureaucracy that gets trimmed; it’s medications, supplies, substitutes, clinical procedures, and the response capacity for over 15 million people,” Berríos warned in statements reported by Diario U. de Chile.

Fenats: “By August, we’ll be out of financial resources”

The financial diagnosis of the union is dire. The public health system already faced a structural debt exceeding 516 billion pesos. Historically, facilities managed to last with resources until October or November. However, with the new 2.5% budget cut enforced by Kast’s administration, Berríos projects that “by August, we will run out of financial resources to continue providing care, putting even patients’ lives at risk.”

The situation worsens with Ordinary No. 12 from the Ministry of Finance, which has frozen all hiring processes for permanent positions within the public system.

Job consequences are already being felt. Overtime has been suspended, temporary replacements halted, and in instances such as the Hospital de Maipú, contract workers have been laid off.

In response, the union warned that this economic strangulation is not a miscalculation but rather a deliberate strategy. “There is a policy aimed at weakening the public sector —Berríos stated—. We believe this is a step showing the government intends to transfer our resources to privatization.”

National Strike Not Ruled Out

In light of what they perceive as a direct offensive by the far-right president against the state health system, Fenats has begun to form a broad resistance bloc. They have coordinated actions with the Medical College, user organizations like Ancosalud, mayors, and legislators. As a result of these efforts, the Senate Health Commission unanimously rejected the budget cuts imposed by the Executive. Protests have already emerged at the Sótero del Río Hospital, and the union warns that this is just the beginning of mobilizations.

The confederation stated they remain in a “state of alert,” awaiting a retreat from the Health and Finance ministries regarding the proposed budget cuts. However, Berríos was firm: if the government persists in leading the network to a terminal crisis, “they will find us organized and mobilized.”

The leader did not rule out a national strike spanning from Iquique to Puerto Williams, which would pose a significant challenge to Kast’s presidency, which has barely completed over 70 days in office.