Funds Withheld by Israel Paralyse Hospitals in Palestine

GAZA — The healthcare sector in Palestine is facing collapse. The Palestinian Union of Private and Non-Governmental Hospitals has issued a stark warning regarding the deadly impact on the healthcare services system due to an acute financial crisis triggered by Israel’s withholding of Palestinian tax clearance revenues.

For nearly eleven months, Israel has withheld all Palestinian clearance revenues. These funds account for approximately 68% of the total income of the Palestinian Finance Ministry. This policy has created extraordinary financial pressure that is paralysing the operational capabilities of medical facilities across the Palestinian territories.

Not an isolated case

In an official statement released on Monday (30/3/2026), the union emphasised that the financial difficulties faced by An-Najah National University Hospital are not a single case. This situation reflects the bitter reality confronting all private hospitals and non-governmental organisations (NGOs) in Palestine.

The accumulation of unpaid government debts and prolonged payment delays have pushed hospitals to rock bottom. Many medical facilities have now reached their maximum bank loan limits and are struggling to secure supplies of medicines and basic medical equipment.

“This situation is exerting unprecedented pressure. The entire healthcare sector risks having to reduce or even suspend some of its vital services,” the statement reads.