The Healthcare Institution of North Iceland in 2025: A Year of Transformation, Strengthening, and Unity in a Challenging Environment
29th December 2025
Jón Helgi Björnsson, CEO of HSN, summarized the key highlights that characterized HSN’s operations during the past year.

There is no doubt that operating healthcare services is highly demanding, and the operation of HSN in the past year was no exception. From a financial perspective, we faced significant challenges, including a substantial deficit both last year and this year, largely due to unfunded wage and institutional agreements. Despite this, we managed to maintain and support the continued development of services. We have worked systematically to ensure operational stability through organizational changes and strong teamwork, with increased emphasis on digital processes aimed at reducing costs while simultaneously improving services.
Thus, the year 2025, despite considerable operational challenges, has in many ways been a good and educational year for the Healthcare Institution of North Iceland (HSN). We have strengthened infrastructure, improved services, and enhanced the working environment. The year’s results confirm that this work is paying off.
A stronger work environment, increased job satisfaction, and service satisfaction
One of the most positive developments this year was the improvement in workplace culture and job satisfaction. Through various initiatives to support our workforce, such as the implementation of the “Well-being at Work” project, job satisfaction improved significantly. This is best reflected in the results of the “Institution of the Year” survey, where HSN’s overall score rose from 3.76 to 4.1, moving from the lower part of the list to 15th–18th place among large institutions in just a few semesters.
Mid-year, a service survey organized annually by the Icelandic Government was launched. Satisfaction with our services has never been higher—91% of respondents rated them as very good or fairly good, and the overall score increased year-on-year. Staff attitude also received exceptionally positive feedback, with 95% of respondents rating it as good or very good. These encouraging results reflect the coordinated efforts of HSN staff across all locations, where quality and proper service are paramount.

Innovation as a driving force
HSN is an active participant in Veltek’s collaboration on developing health and welfare services. Three HSN projects were nominated for the 2025 Public Sector Innovation Awards. These projects focused on advancements in digital transformation for automation and process simplification, implementing team-based work in primary care to strengthen collaboration and holistic service, and promoting workplace well-being. These nominations indicate that HSN staff are forward-thinking and the institution is modern.
HSN received two grants from the Ministry of Health this year: ISK 10 million for implementing the smart solution Memaxi at HSN Blönduós to strengthen telehealth services in our region, and ISK 2.5 million for purchasing equipment that enables HSN to provide remote eye screenings for people with diabetes using artificial intelligence.
Nursing homes join HSN
HSN was entrusted with the operation of two nursing homes this year: Sæborg in Skagaströnd at the beginning of the year, and recently it was announced that HSN will take over the operation of Hornbrekka in Ólafsfjörður in the new year. HSN now operates over 200 nursing and hospital beds in North Iceland, including Ólafsfjörður, Blönduós, Skagaströnd, Sauðárkrókur, Siglufjörður, and Húsavík.
A contract for the construction of a new nursing home in Norðurþing was signed this year, and the project was subsequently tendered. The home, which will have about 60 rooms, will significantly improve services for residents and staff facilities. Construction is expected to be completed in 2027.
Organizational changes for the future
The merger of the Dalvík health center and the Fjallabyggð unit was the largest organizational change of the year. The goal was to strengthen staffing, increase stability in medical services, and ensure residents receive stronger and more coordinated care. The merger officially took effect on September 1, and the new unit now employs about 80 people in over 50 positions. The transition has gone well, and there are strong indications that the objectives set are being achieved. The larger unit will also be better positioned to manage Hornbrekka nursing home, which the ministry recently announced will transfer to HSN on April 1.
Postponement of a second health center in Akureyri
It was decided to postpone the construction of a new health center in Akureyri for at least five years following a reassessment of assumptions, discussions with stakeholders, and positive service survey results. The current setup, with a new center in Sunnuhlíð and operations at Hvannavellir, has proven highly effective. Instead of splitting clinical services, the focus will be on strengthening existing services. HSN has agreed to expand the current center, which will open in April next year.

Our professionals
At HSN, we are fortunate to have dedicated and capable staff. For years, we have supported employees who wish to pursue job-related education, such as nursing and healthcare assistance, and it is very encouraging to see this interest. Today, over 30 employees are studying to become healthcare assistants, and 18 doctors are expected to be in specialized training in family medicine at HSN in 2026, to name a few examples. HSN remains committed to supporting and encouraging staff to pursue education that benefits their roles.
A particularly important and historic milestone was reached when Elín Arnardóttir, a nurse at HSN, became the first to complete a PhD in nursing at the University of Akureyri. She is also the first nurse at HSN to hold a doctoral degree.
Recently, we have showcased the work of our staff in various fields on our website, hsn.is. The purpose is to attract new talent and highlight the diverse expertise within HSN, as well as to promote our activities.
Looking ahead
In the coming year, HSN will continue to strengthen its infrastructure, develop services, adjust its organization, and improve the working environment in a challenging context. The goal is to provide strong and efficient healthcare services in North Iceland for the benefit of residents. However, the financial environment for healthcare services will remain challenging, and it may be necessary to implement changes to align operations with available funding.
I would like to especially commend all HSN staff. They are the heart and backbone of all our activities. This is clearly reflected in the service survey results, which show that clients place great emphasis on the warmth, professionalism, and empathy of staff across all fields. We also wish to thank our friends and organizations for the generous donations received during the year, which are invaluable to us.
On behalf of HSN, we wish the people of North Iceland and all Icelanders a joyful and peaceful holiday season, health, and happiness in the new year.
Author: CEO of the Health Institution of North Iceland
