The Palestinian Authority is poised to pay more than $200 million in bills for its healthcare system after a $300 million payment in September was deemed inadequate, according to officials familiar with the matter.

The payment of the $300m will help finance a $200m contribution to the Palestinian Authority healthcare system, which the Palestinian president hopes to begin offering by the end of next year, said the officials, who spoke on condition of anonymity.

The PA has been facing financial challenges, particularly after the Israeli military’s 2015 Gaza offensive that killed more than 2,100 Palestinians.

The official added that the payment of funds to pay for healthcare was approved by the PA’s cabinet in a meeting in the Israeli-occupied West Bank.

The Palestinian Authority has been struggling with rising health costs as the population ages, and has relied on donor countries to provide healthcare services for the most vulnerable Palestinian population in the West Bank and Gaza.

Israel maintains the West Jerusalem settlement blocs occupied East Jerusalem and West Bank, which it has designated a “closed military zone.”

The Palestinian administration has repeatedly called for an independent Palestinian state, which Israel refuses to recognize.