Financial problems impact Costa Rica health infra plans

Costa Rica’s social security institution (CCSS) is in serious financial trouble, with effects on investments and healthcare infrastructure.

Earlier this month, CCSS suspended investment in contracts that had not yet been awarded or for which construction had not started.

Defending the decision, President Rodrigo Chaves was quoted in a Wednesday report by newspaper La Nación as saying that “the situation is critical, we cannot lie. There will be unions and certain groups saying ‘this is a scandal, they took away the investment portfolio.’ But we have a situation where the auditing firm [Deloitte] says it does not know what is the situation of CCSS.”

CCSS head Marta Eugenia Esquivel told a congressional committee on March 13 that liquidity problems will intensify, especially in 2026 and 2027 if reforms are postponed. Director Juan Ignacio Monge said separately that all reserves would be used up by 2027 if expenditure keeps exceeding income.

The institution has stopped land acquisition for projects in the tender stage and is creating a database containing all available property. It is also revising 58 planned projects that are not yet approved and involve US$540mn. Among them are a Cartago hospital and the Tony Facio hospital in Limón.

“The board of CCSS will carefully analyze each project that is part of the institutional investment portfolio, to determine its order of priority and feasibility,” Esquivel said.

But 45 advanced works will continue, including the Monseñor Víctor Manuel Sanabria hospital in Puntarenas, the William Allen Taylor facility in Turrialba, as well as the modernization of CCSS’ headquarters and of La Cruz clinic.

To gain insight into the consequences for patients and workers, the infrastructure committee approved a motion, demanding Esquivel to explain the suspensions. But a date has not been revealed.

La Nación reported in November that CCSS’ 10-year investment plan and hiring of 12,000 employees are major financial risk factors.