Health and Finance ministry officials on Sunday agreed to transfer health care services from state to private hands, completing a government process started 12 years ago.

According to the agreement, from now on private clinics will be responsible for running mental health services -the last aspect of medical care which still remained under direct state control.

Psychiatric wards and communal mental health centers will be run under state supervision by private clinics, which will receive an increased government subsidy of NIS 1.2 billion.

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Patients suffering from serious mental health problems, however, will continue to be treated at institutions run by the government.

Some critics believe government funds channeled towards the private clinics in order to maintain mental health institutions are insufficient and will Inevitably result in a deterioration of the quality of their services.