The Regional Secretary for Social Solidarity revealed that on Tuesday that new funding model for Private Social Solidarity Institutions (IPSS) and "Santas Casas da Misericórdia" will enter into force from January 2014.

"The new model is based on the financing of services provided to the community in accordance with the number of vacancies established in the contracts between the Government and each IPSS, which takes into account the type of service it provides to the community," says Piedade Lalanda.

The Regional Secretary spoke to journalists after being heard by the Committee on Social Affairs of the Legislative Assembly of the Autonomous Region of the Azores on the amendment to article 108 of the Regional Legislative Decree approving the Azores Welfare Code.

The amendment in question concerns the article of a legal document in force since 2012 that stipulates the funding of IPSS and "Santas Casas da Misericórdia" in a standard amount. The transitional rule provided in the Welfare Code will cease to be in force by April 2014.

According to Piedade Lalanda, the amendment proposal submitted by the Azorean Government provides "an adjustment" up to 10 percent of the amount of funding.
Under this proposal, the Azorean Government also intends to stipulate a fixed number of vacancies in the contracts to be signed in order to ensure the stability in the funding of institutions.

"We are trying to create two stabilising factors as we are aware that we are changing the funding system. We have also in mind the need to adapt institutions to this new process and to this new funding model," the Regional Secretary stated, considering that the transitional rule will "support institutions" in this transition process.

Moreover, Piedade Lalanda restated that, through the implementation of the new funding model, 75 percent of the institutions will maintain or increase the levels of public subsidisation.