The Ministries of Health and Finance have reached a budget agreement for the Health Ministry and public health system for 2026. The agreement includes a series of changes and improvements that will begin implementation in the coming year.
As part of the budget agreement, the ministries will advance a plan to improve service quality and expand access to geriatric services, including increasing the number of geriatric beds in Israel and enhancing geriatric rehabilitation. An additional ₪200 million per year will be allocated for this plan.
A new billing system between hospitals and HMOs was also agreed upon: hundreds of millions of shekels will be dedicated to advancing the new capitation-based billing system, aimed at maintaining stability across all entities and improving financial incentives to enhance inpatient services. The model will regulate acute home hospitalization to expand this service through hospitals, along with continued quality improvement in internal medicine departments.
Following government decisions to establish a new hospital in Be’er Sheva, the Ministries of Health and Finance agreed on the framework and budgets for planning the hospital, in collaboration with HMOs Clalit and Leumit as hospital owners, their representative Pras Ltd., and the operating entity, Sheba Negev Hospital.
The agreement also includes the allocation of approximately ₪200 million in 2026 to promote new security projects within the health system.
In mental health, several important agreements were reached, including the addition of about 100 new positions for:
- Opening new “Soteria” units in psychiatric hospitals
- Positions for psychologists in the public sector to hire additional staff and increase working hours, in line with the new collective agreement
An additional ₪47 million was allocated to expand mental health services, including suicide prevention and further strengthening resilience centers. Art therapy treatments will also be included in the national health basket at a cost of approximately ₪76 million.
To preserve and expand the scope of clinical trials conducted in Israel’s public health system, the ministries allocated ₪25 million to implement regulatory changes and develop supporting infrastructure.
For preventive medicine initiatives, ₪55 million and 22 positions were allocated to address obesity, promote anti-smoking programs, and increase effective taxation on e-cigarettes.
Regarding the healthcare workforce, a plan will advance the recruitment of 77 specialized nurses across various sectors, along with 35 health professional positions to strengthen services and increase hospital staffing.
The budget agreement also includes an additional ₪100 million for the 2026 National Health Basket Committee budget, supporting the implementation of government decisions on patient cost-sharing.
Health Minister Chaim Katz: “I thank the teams at the Health and Finance Ministries for their professional work leading to significant agreements. We ensured that resilience centers will continue providing essential services while the overall budget strengthens the health system and improves services for Israeli citizens.”
Director General of the Ministry of Health, Moshe Bar Siman-Tov: “During the war, the health system faced unprecedented challenges and was a critical component of national resilience. The agreed budget will allow the Ministry of Health to enhance system-wide responses to routine challenges, such as an aging population and building a new hospital in Be’er Sheva, as well as emergency challenges, including hospital security and continued strengthening of resilience centers. System needs always exceed available funding, but we are confident that this budget agreement will enable us to continue improving the public health system for all Israelis.”
“I thank Minister Katz for his professional leadership and ongoing commitment, which made it possible to advance significant agreements to strengthen the health system in routine and emergency situations. I also thank Shas Chairman Rabbi Aryeh Deri for his continuous support, which enabled the budget agreement, strengthening the system’s ability to provide quality care to the public.”
“I thank the professional teams at the Ministry of Health, led by Ms. Neriya Stauber, Deputy Director of Budgets, and all ministry units that worked tirelessly over recent weeks to reach the budget agreement. I also thank our partners in the Finance Ministry, led by Ms. Yael Lindenberg, Deputy Budget Supervisor, and Mr. Daniel Fedon, Health Sector Coordinator. This year’s agreement also includes a groundbreaking new billing system achieved through professional collaboration with the Finance Ministry teams.”