Iceland Health
First long-term agreements on joint replacement surgery and other surgical interventions
12th August 2025
Iceland Health, Klíníkin Ármúla ehf. and Stoðkerfi ehf. in collaboration with the DEA Medica Medical Center have concluded an agreement to perform joint replacement, back, abdominal, and breast reduction procedures with the payment participation of health insurance for the next three years.
The Minister of Health, the Director of Health and the heads of service providers confirmed the agreement at the headquarters of Iceland Health today. Improved access for patients to essential services, clearer framework and shortening of waiting lists are the main objectives of the agreement.
I believe these are good and sensible agreements that prioritise the interests of patients, quality of service, efficiency and efficiency. They are also the first comprehensive long-term agreements on these services. It creates greater predictability for patients and providers, which is clearly in the interest of both parties. First and last, the objective is to reduce waiting lists and thereby the waiting for these important and life-improving measures.
In the context of this agreement, we will also focus on simplifying the system, increasing efficiency and ensuring equality for patients, including their unhindered access to a central waiting list when a professional assessment by a specialist physician is available.
says Minister of Health Alma D. Möller.
Around 1,000 actions annually – a possible increase without contracts
The contracts are awarded following an open procurement procedure. The contracts stipulate how the funding is distributed proportionally between the service providers and furthermore how the funding is distributed proportionally between the categories of operations according to the criteria of Health Insurance, which are reviewed annually. Based on the available funding, the contracts guarantee approximately 1,000 operations on an annual basis, including approximately 600 joint replacement operations, approximately 170 back surgery, 170 abdominal surgery and 60 breast reduction surgery. The contracts include flexibility, which allows for the increase of operations within each year, the availability of additional budgets, and need not be negotiated separately. Similarly, additional funding can be directed to certain categories of operations over others if necessary.
Director of Iceland Health, Sigurður Helgi Helgason, says the agreements are important and involve an increase in the scope of surgical procedures outside healthcare institutions:
They ensure improved access to urgent services for the public, which will reduce waiting lists and ease the burden on Landspítali and other hospitals. With long-term agreements we ensure greater stability and we have taken important steps to trust the quality and framework of the service.
The parties appoint a cooperation committee which will deal with, among other things, the need for services and the status of waiting lists, priorities, operational techniques and the dissemination of patients into actions. The agreement specifically stipulates that, in general, those parties that carry out actions on the basis of the agreement shall not carry out actions of the same kind without the participation of health insurance. However, if it is absolutely necessary, the service provider may apply for an exemption to Iceland Health from this provision, which is dealt with in light of whether the request for an exemption is based on factual considerations.
Kristján Jón Jónatansson, CEO of Klíníkin, Sigurður Helgi Helgason, CEO of Iceland Health, Alma D. Möller Minister of Health, Hannes Sigurjónsson, physician at the DEA Læknahús, and Dagný Jónsdóttir, CEO of Stoðkerfi.