Health Ministry Launches Inquiry into Clalit Health Services Governance Amid Leadership Crisis

The Ministry of Health has announced the formation of an official committee to investigate the governance and operations of Clalit Health Services, Israel's largest healthcare provider. The move follows a series of high-level resignations and growing concerns over corporate governance and management efficiency within the organization.

In a formal letter signed by Health Minister Uriel Bosso, the ministry directed the committee to submit its findings by August 15. The inquiry will primarily examine the conduct of Clalit’s board of directors, the frequency of leadership turnover, and the blurring of lines between oversight and executive management.

The appointment letter, sent to committee members — including senior government officials and legal experts — stated that the goal is to assess the board’s role in maintaining effective governance, especially its role in appointing and dismissing CEOs, and the impact of internal regulations on organizational performance.

Leadership Instability at the Heart of the Review

Over the past five years, Clalit has experienced a high turnover in its leadership, with four CEOs departing, the most recent being Eli Cohen. In addition, four senior board members have stepped down in recent months.

"After Cohen's resignation, the minister decided that a line had been crossed," said a senior Health Ministry official.
"This is not just another isolated event. The board’s functioning and its decision-making mechanisms must be investigated thoroughly."

Committee Empowered with Legal Authority

The investigation committee has been granted broad authority under Section 37 of the National Health Insurance Law, which allows it to summon witnesses, demand documentation, and propose structural changes if necessary.

The committee is expected to examine:

• The board's decision-making processes

• The efficiency of executive management

• The separation of supervisory and operational roles

• The appointment procedures for senior positions

• The adequacy of Clalit’s organizational regulations relative to accepted corporate governance standards

Failed Attempts at Internal Resolution Prompted Inquiry

The Health Ministry clarified that the decision to appoint the committee came only after repeated attempts to reach an understanding with Clalit’s leadership failed. Officials cited unsatisfactory responses from the fund’s board and a lack of visible action to address underlying issues.

“The board of directors did not provide a substantive and satisfactory response,” reads the ministry’s statement.
“There is a sense of disconnect between management and supervision, and this must be thoroughly investigated.”

Moshe Bar Siman Tov, Director General of the Ministry of Health, warned that failure to resolve the governance issues could jeopardize the functioning of a fund that serves over half of Israel’s population.

Clalit Responds: "Committee Is Unnecessary 

In response, Clalit Health Services issued a statement criticizing the formation of the committee:

“This is an unnecessary and unprecedented committee, especially given the continuous praise the Health Ministry has expressed for Clalit’s performance in recent years.”

Clalit noted that a separate review led by retired Supreme Court Justice Yoram Danziger is already underway, with results expected soon. The organization expressed confidence that his findings will demonstrate that there is no justification for the Health Ministry’s committee.

“Clalit will continue to be the leading institution in the Israeli health system and will faithfully serve its clients,” the statement concluded.