Azores Wipes €200m Medical Debt, Commits to 3-Month Supplier Payments and Faster Care

Azorean Government Wipes Out €200 Million in Health Arrears and Promises Faster Payments

The Autonomous Region of the Azores says it has settled every past-due invoice owed to doctors, pharmacies and medical-supply companies, closing a decade-long chapter of mounting liabilities that once threatened its public health system. Regional Finance Secretary Duarte Freitas told reporters in Ponta Delgada that €250 million has been transferred to health-care suppliers since January—€200 million of it related to bills dating as far back as 2012. The remaining €50 million corresponds to current-year expenses, indicating, according to the government, that routine obligations are now being met on schedule.

Debt Ratio Stays Under 60 % of GDP

Freitas stressed that the extraordinary cash outlay will not push the archipelago’s debt above the voluntary 60 percent-of-GDP ceiling adopted by the regional executive. The administration converted much of the commercial debt into longer-term financial debt, a mechanism green-lit by Lisbon and capped at €150 million this year. A fresh authorization of up to €75 million is already pencilled into the 2026 plan should additional refinancing be required.

New Rule: Suppliers Paid Within 60–90 Days

Health Secretary Mónica Seidi said each of the region’s three general hospitals—Divino Espírito Santo (São Miguel), Santo Espírito (Terceira) and Hospital da Horta (Faial)—as well as every Island Health Unit has received funds. Going forward, invoices must be cleared in no more than three months, a standard that brings the Azores closer to the 30-day goal pursued by Madeira and far below the 211-day average recorded last year on mainland Portugal.

More Money for Modernisation and Waiting-List Relief

The 2025 regional budget earmarks almost one quarter of total spending—around €475 million—for the health portfolio, including an extra €15 million to refurbish Hospital Divino Espírito Santo and €4 million for additional surgeries to shorten waiting lists. Seidi also highlighted new incentives worth 35 to 55 percent salary uplifts, rent support and travel subsidies designed to lure specialists to the islands for up to five years.

In a separate measure aimed at patients, upfront co-payments are no longer required when residents choose accredited private clinics for diagnostic tests or imaging that the public network cannot provide promptly.

Businesses Welcome Predictability, but Call for Vigilance

Local chambers of commerce have long complained that late payments choked cash flow and deterred investment. While no formal impact study has yet been released, business leaders say the clearing of arrears is already increasing liquidity in pharmacies and small suppliers. Opposition parties, however, warn that the legacy of Saudaçor—the defunct health-management company that left €815 million in broader liabilities—means rigorous oversight is still needed.

Looking Ahead: Digital Tools and a 2026 ‘Health Voucher’

The regional treasury is rolling out the “mySaúde Azores” app, giving officials real-time data on spending and payment times. If the system cannot provide a specialist appointment within legally guaranteed deadlines, residents will from 2026 receive a ‘health voucher’ valid in public or private facilities, according to the draft budget presented to parliament.

Freitas concluded that the latest €250 million cash injection should be seen not merely as debt settlement but as “an investment in credibility,” arguing that predictable public accounts are essential for both patient care and broader economic confidence across the nine islands.