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Palestinian Healthcare Systems Strained by Israeli Fiscal Measures and Military Actions

8/7/2026, 4:13:19 AM

Core Event

Since the war that began in October 2023, Israeli actions have intensified pressure on medical services in the West Bank and Gaza. In the West Bank, Israel has withheld at least $2.5 billion in tax and customs revenues collected for the Palestinian Authority (PA) and expanded checkpoints that restrict patient movement. In Gaza, an Israeli airstrike on a pharmaceutical warehouse adjacent to al-Aqsa Martyrs Hospital devastated stored medicines, worsening drug shortages.

Background & Context

The PA relies on Israel to collect taxes on goods entering the West Bank. Finance Minister Bezalel Smotrich stopped monthly clearance revenues last year, crippling the PA’s ability to fund health workers, purchase medications, and keep public hospitals operational. New barriers and checkpoints often close without warning, hampering ambulance access and patient travel.

In Gaza, repeated strikes have battered the health system. International organizations such as the World Health Organization supply much of the remaining medication, but Israeli restrictions on imports and the destruction of storage facilities have sharply reduced stocks.

On-the-Ground Reports

In Iktaba, West Bank, 70-year-old Bassam Musleh finally received his blood-pressure medication from a PHRI mobile clinic after six months of searching. Mohammed Sarris, 64, relies on the same clinic for eye drops after displacement from the Nur Shams refugee camp. In Gaza, Jihad Abu Hamida, 61, died of cancer after months without needed drugs, while his son Ali Abu Hamida watches his 14-year-old’s heart and kidney conditions deteriorate without specialized care.

Official Statements & Responses

  • Milena Ansari, PHRI director, warned that continued restrictions will make patients bear the cost of the crisis.
  • Majed Abu Ramadan, Palestinian Health Minister, said unpaid staff are absent, creating backlogs and delaying routine surgeries.
  • The Israeli military explained a stillborn infant delivered in an ambulance near Nablus resulted from the vehicle’s failure to complete “required coordination” before reaching a checkpoint.
  • Khalil al-Daqran, spokesperson for al-Aqsa Martyrs Hospital, described the August 2 strike as part of an “occupation” strategy to collapse Gaza’s healthcare system.
  • Muhammad Abu Nada, medical director of the Gaza Cancer Center, warned that the shortage of oncology drugs places patients at “imminent risk of death.”

Criticism & Opposition

PHRI’s Milena Ansari characterized Israel’s withholding of tax revenues as “weaponizing” funds for political pressure, a practice rights groups have condemned for decades. UNRWA’s West Bank director Roland Friedrich noted a marked increase in patients at its health centers but highlighted funding shortfalls and Israeli import restrictions as major obstacles.

Conflicting Reports & Gaps

The Israeli military asserts that security procedures, not intentional obstruction, caused delays in ambulance passage, while Palestinian health officials and NGOs attribute the same incidents to checkpoint policies and coordination failures. No independent verification of the coordination claim is provided.

What’s Next

The PA continues to seek restoration of the withheld revenues, and Palestinian officials have called on the international community to pressure Israel to lift fiscal and movement restrictions. Gaza’s health authorities urge protection of medical facilities under international law and the resumption of unrestricted humanitarian aid deliveries.