Estonian health fund's summer retreats add up to quarter million in five years

In the wake of the scandal sparked by the reported six-figure cost of its recent summer retreat, the Estonian Health Insurance Fund (EHIF) detailed its spending over the past five years, including summer retreat costs totaling a quarter of a million euros and its move to a pricier new office complex.
The EHIF itself refers to its annual summer days as appreciation events, stating that up until 2018, the fund did host two separate events: a board reception event and a summer retreat.
"From then on, these were combined into one appreciation event," noted EHIF public relations chief Dan Lõhmus.
In 2025, EHIF'S appreciation event for employees and their families was held at Castle Spa Wagenküll, located in Taagepera Castle in Southern Estonia. The total cost, including VAT, was €83,775, with employees chipping in with a participant fee of €25 each, or €100 per family.
In 2024, its appreciation event was held at Vanemuine Concert Hall in Tartu, with accommodation at the Dorpat Hotel. The total cost, including VAT, was €32,296, with employee participant fees of €25, or €100 per family.
In 2023, the health fund's appreciation event was held at the Hotel LaSpa Laulasmaa for a total cost of €60,102, including VAT. Employees contributed a participant fee of €15 each, plus €25 for a guest and €5 per child.
In 2022, its appreciation event took place at the Noorus SPA Hotel in Narva-Jõesuu, with a total cost of €42,717, including VAT, and participant fees of €10 per employee, or €40 with a guest.
In 2021, EHIF's appreciation event was held at the Pärnu Beach Hotel, costing €29,132, including VAT. Employees contributed with a participant fee of €10 each, plus €15 for a guest and €5 per child.
Over the years, the Estonian Health Insurance Fund's annual appreciation events have been attended by around 140–170 people.
A fringe benefit tax applies to all quoted amounts. EHIF noted that it's common practice for institutions to quote service prices inclusive of VAT, and that, like other organizations, the Health Insurance Fund has followed this practice in all its responses.
Newer building, but smaller office
Last year, the Estonian Health Insurance Fund moved from its worn-out, 2,800 square meter Lastekodu tänav office to a smaller, more modern office in Arter Quarter, a new high-rise business complex on Liivalaia tänav.
The new office space measures about 1,900 — a roughly one-third reduction in space — and the fund has downsized from four floors to just two. According to EHIF, the new building also meets modern energy and environmental standards, allowing for more efficient operation and a smaller environmental footprint.
While noting that the cost of the lease agreement is confidential information, Lõhmus explained that other rental options in Central Tallinn were considered as well, but Arter offered the best value for their money.
He said that from January to June of this year, monthly rent and related costs averaged about €63,684, depending on utility costs.
According to a statement from EHIF, before moving, office costs at their Lastekodu location averaged around €61,000 a month, which included rent, utilities, security, cleaning as well as an administrative specialist position that was eliminated with the move.
Lõhmus confirmed that the supervisory board of the Estonian Health Insurance Fund did not approve the move or costs, noting that this was a management board decision.
"The members of the supervisory board were informed of the moving plans during an EHIF supervisory board meeting, where the supervisory board acknowledged the agenda item 'Health Insurance Fund's Tallinn office move' on April 26, 2024," he said.
The public relations chief noted that EHIF also has offices in Tartu, Pärnu and Jõhvi.
Fund targeting long-term savings
Asked what formula will allow the Health Insurance Fund to save on fixed costs over the next decade at its new location, Lõhmus pointed out that their old office was unsuitable for modern hybrid work and had inefficient heating and ventilation systems.
The old lease also allowed annual rent increases, which were routine, and any new lease would have required renovations leading to higher rent anyway.
In light of these expected rent increases at the old office, and considering the total monthly costs were in the same ballpark regardless, Lõhmus says moving to Arter avoided these expected future costs and achieved direct fixed cost savings projected over ten years.
"Among other things, parking costs have been excluded from the calculation because they can be suspended at any time," he added.
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Editor: Aleksander Krjukov, Aili Vahtla








