Paraguay's Social Security Institute faces a multifaceted crisis with a mass exodus of doctors, a change in its board, an asset crisis, and a bill to declare a state of emergency, while the government highlights its construction of new hospitals.
Isaías Fretes
Pytagua coverage mentioning Isaías Fretes.
Paraguay's Social Security Institute (IPS) is spending more to resume construction of surgical centers at the Central Hospital in Asunción after fraud, million-dollar contract amendments, and three-year delays in the contract with Neighpart S.A., while former managers are investigated for losses to the public treasury.
While Paraguay's Social Security Institute (IPS) approves a mandatory digital census for retirees, the institution faces a crisis with stalled modular operating room construction, which has consumed multimillion-dollar payments and generated lawsuits, and with the allegation that 569 nurses receive less than the minimum wage.
Paraguayan President Santiago Peña denied payment to foreign influencers in the country, highlighted the attraction of digital nomads and investments in infrastructure and security, but documents reveal the government allocated $1.5 million for campaigns with influencers until 2027, in addition to defending the Social Security Institute (IPS) and avoiding comment on Horacio Cartes' Senate candidacy.
IPS began its restocking plan with the arrival of 124 medicines, which will reduce the shortage rate from 28% to 19% in the next 15 days and is expected to cover demand for two months.
Paraguay's Prosecutor's Office charged nine former IPS employees, including former presidents, for embezzlement of G. 61 billion in a contract for modular operating rooms never installed.
Paraguay's Social Security Institute seeks to recover $711 million from private companies and proposes a trust as a solution, while facing budget pressure in healthcare, with most medication funds consumed by oncology drugs.
The president of Paraguay's Social Security Institute (IPS), Isaías Fretes, warns of an irreversible crisis at the institution after 100 days of management, marked by severe financial challenges, medicine shortages, and a "perfect storm" caused by reduced working hours for health professionals.
IPS plans to refinance short-term liabilities to free about 105 billion guaranis a month for medicines. The Economy Ministry and a Senate committee currently oppose bonds and emergency legislation, respectively.
The IPS, the largest holder of public funds in the Paraguayan banking system, is considering investing abroad after reaching its legal investment limit in the sector.
The IPS (Instituto de Previsión Social, Paraguay's social security institute) and pharmaceutical companies have established a working group to combat the severe medication shortage crisis that is forcing beneficiaries to pay for treatments out of their own pockets.
The National Union of Retirees of Paraguay is pressuring Congress to approve a bill that would declare an emergency in the IPS health fund to release extraordinary funding and address the critical shortage of medicines.
A former IPS advisor accuses president Isaías Fretes of suffering political interference and failing to report irregularities, while the administration announces its first criminal complaint and attributes the crisis to an inherited administrative disorganization.
The Liberal candidate Luis Fretes compared a potential victory for the ruling party's candidate Camilo Pérez in the Asunción mayoralty to the historic sacking of the city during the War of the Triple Alliance.
The new management of Paraguay's social security institute has found 67 inherited criminal cases, including high-impact investigations and delays of up to a decade, and plans to speed up investigations to recover funds.
IPS President Isaías Fretes discovered hospital equipment valued at $20 million abandoned and unused at the Central Hospital, prompting the opening of audits and the possibility of reports to the Public Ministry for alleged damage to public property.
Nurses leave Paraguay's social security institute IPS due to low wages and migrate to countries like Germany and Italy, while healthcare professionals protest for better working conditions and salary adjustments.
Senator Rafael Filizzola demanded explanations from IPS president Isaías Fretes over the transfer of billions of guaranis from the social security fund to Ueno bank, which is linked to a former business partner of President Santiago Peña, following the relaxation of rules that reduced financial security requirements for the institution.
The IPS Hemodynamic Service is operating at only 40% of its capacity due to a lack of dedicated rooms, while specialists warn of a rise in heart attacks and hypertension among young Paraguayans under 40, driven by factors such as the use of energy drinks, anabolic steroids, vapes, and a sedentary lifestyle.
IPS canceled tenders that included items removed from its formulary, following the withdrawal of 23 products — 12 vaccines and 11 medications — as part of a broader review that eliminated 916 items from the institution's official supplies list.
The Hospiclean Consortium was reported to the DNCP for paying cleaning workers at the IPS below the legal minimum wage, despite declaring costs of up to G. 9.5 million per worker per month, while the outsourcing contract, signed in November 2024, had a total value of G. 126.9 million.
Mass resignations of professionals in the Neonatology Department at the IPS Central Hospital threaten the continuity of the service. Management is proposing public calls for foreign doctors to fill the vacancies.
The IPS Board of Directors unanimously approved a private godparent sponsorship proposal presented by board member Mirtha Arias to improve the conditions, considered precarious and inhumane, of shelters for relatives of hospitalized patients. A pilot plan will be implemented after discussions with pharmaceutical chambers and the institution's suppliers.
The president of IPS, Isaías Fretes, found leaks in 80% of the roof of Clínica 12 de Junio in Asunción, a hospital that opened just a year and a half ago and also suffers from issues such as a non-functioning water pump, a kitchen closed for over 18 months, and a flooded X-ray department. He has called for a comprehensive technical, administrative, and contractual audit to determine accountability.