Why does a cup of coffee in an Israeli hospital cost NIS 19?

The Knesset Health Committee initiated monitoring of food prices in hospital shops after learning that a cup costs an average of NIS 19. Committee chairman Shas MK Yoni Mashriki declared that “hospital outpatients and visitors are a captive audience that should not be robbed for basic products such as coffee and a bottle of water. The franchisee can profit from the prices of the luxury products instead. 

He complained during the meeting about the conduct of the Economics Ministry that claimed that controlling such prices was the responsibility of the Consumer Protection Authority. He demanded that within a month, the Economics Ministry send to the Health Committee its detailed position regarding the supervision of food products in hospitals including whether was a need for such supervision, on which products and in what way they can be monitored.

In addition, he asked the Health Ministry to conduct a comprehensive inspection of all hospitals to determine which food products among the products sold in the hospital should be designated as price controlled.  After this effort has results, the ministry must advise the hospitals to state in the terms of the tender that there will be a number of basic food products that will be marketed at a fixed and reduced price to the those who come to the hospitals. 

Mashriki praised the supervision carried out by Clalit Healthcare Services in the hospitals they own and noted that the supervision did not harm the hospitals’ ability to sign contract with franchisees.

Impact of hospital prices 

Coffee, sandwiches, pastries or any other product sold in hospital cafeterias are significantly more expensive than in other locations, the committee members said. For example, a small iced coffee drink at Sheba Medical Center costs NIS 19, and a small cup of cappuccino coffee at Shamir Medical Center costs NIS 13.

The Health Ministry declared in the past that it would consider intervening in the control of prices in hospitals and not only in government institutions, but in practice, nothing was done, Mashriki said. 

Dr. Dalia Shilian, chief economist of the Consumer Protection Authority, suggested that the terms of the tender should include a threshold price for a number of products. Yedidya Sherlo, who also heads the supervision of hospitalization at the Health Ministry, acknowledged the problem and argued that it is necessary to define what the basic products are that can be supervised such as water and coffee. “Obviously, if there is an expensive box of chocolates, there can’t be a limit on its price,” he said – stressing that such supervision requires legislation initiated by the Economics Ministry. 

Etti Pitussi, the Health Ministry’s payroll economist of state-owned government hospital, said that hospitals do not always find suitable franchisees, and therefore electrical devices are placed on site for food vendors

Shlomi Grossmam, head of Clalit’s purchasing department, said that his health fund issues a uniform tender for the medical centers, which includes a monitored price list, and the supervision does not cause franchisees to flee. Yoav Sibor, a health liaison at the Treasury’s budget division, warned that stiffer supervision of prices could harm revenues and the financial stability and the budgetary balance of the hospitals.