The Malta Independent 10 May 2024, Friday
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Steward Health Care mum on concession agreement discussions

Kevin Schembri Orland Sunday, 7 November 2021, 07:30 Last update: about 4 years ago

Steward Health Care has kept its lips tightly sealed about discussions currently taking place with government over the concession agreement.

Steward Health Care currently runs the Gozo General, St Luke’s and Karin Grech hospitals.

Government had signed an agreement with Vitals Global Healthcare (VGH) in 2015 through which the company was to run the three hospitals. The deal was signed when Konrad Mizzi was Health Minister and it was mired in controversy, given the company’s lack of background in the medical field. Steward Health Care came into the picture in 2018, when VGH sold the concession to it. Since then, Steward Health Care has been running the three hospitals.

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Government has been in talks with Steward Health Care for over a year-and-a-half over possible changes to the concession. Minister Fearne has previously said that there are three options ahead – they could choose to do nothing and leave everything as is, an agreement could be reached on a better service to patients or they can decide to end the contract.

Asked for an update on these talks in October, Minister Fearne had said that Steward Health Care had taken over the concession, as it was, from VGH. 

“So the obligations government had towards the concessionaire are now towards Steward Health Care and the obligations the concessionaire has towards patients and the government were taken on by Steward.”

Fearne said that Steward Health Care, early on, asked government whether they can revise certain concession clauses as they believe they could provide a better service if there are some revisions. Fearne said that government has no problem holding discussions, “always within the context of Maltese and EU laws and procurement regulations. Negotiations have been ongoing for a year-and-a-half and it seems we are reaching the end of these discussions. What is clear is that Steward, at no point, was exempt from keeping to or providing what they’re obliged to within the concession as it currently reads,” he had said.

The Malta Independent on Sunday sent questions to Steward Health Care asking for details as to what it wants changed in the concession agreement; for details as to how close they are to a decision on the issue; whether the company is considering leaving Malta and exiting the concession if the changes it wants are not made; for details as to how much funds it receives from government each year and to outline exactly what investments the company has made and their costs since it took over the concession.

The company declined to answer the questions. “Steward Health Care Malta declines to comment/reply on this matter,” a spokesperson said.

The concession has been at the centre of controversy since the deal was originally signed with Vitals Global Healthcare. Former Opposition Leader and PN MP Adrian Delia had initiated a court case to take back the three hospitals from the concessionaire, which is still ongoing. The PN has been critical of Steward Health Care, questioning the investment made by the company in the hospitals. Among other things, the PN is saying that it would rescind the contract if elected.

 

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