The “Simo Milošević” Institute in Igalo generated €10.3 million in revenue last year—€800,000 more than in 2023—despite the absence of the Norwegian government health program, which had previously been a significant source of income.
Institute Director Zoran Kovačević stated on Radio Montenegro that the facility faced major financial obstacles, including a bank account freeze from December 2023 to July 2024. He noted that improved pricing strategies and government support helped offset some of the losses.
The restructuring plan for the institute, valued at €88 million, aims to settle outstanding legal obligations—particularly those related to employee lawsuits and a case with Jugobanka—and to fund reconstruction efforts. About €23 million will go toward clearing these debts, with the state covering 60% and the remaining 40% coming from the Institute and its shareholders, including Vila Oliva.
The rest of the funds are earmarked for upgrading infrastructure, especially the Institute’s largest building, aiming to elevate it to a four-star facility and enhance its medical services.
Kovačević expressed hope for the return of the Norwegian program, which could further improve the Institute’s financial stability.
