A court decision on the case regarding the Steward Health Care concession to run three hospitals in Malta and Gozo is expected on 31 January.

PN MP Adrian Delia (when he was the Opposition leader) in 2018 had filed a case asking the courts to declare the agreement between the government of Malta and Vitals Global Healthcare (VGH) – since then superseded by Steward Health Care – null and void, arguing that the concessionaire had failed to adhere to obligations laid down in the contract. 

VGH had been granted the hospitals concession in 2015. Steward Health Care had replaced VGH after the former took over the concession, thus taking over the running of St Luke’s hospital, Karin Grech hospital and Gozo General Hospital in 2018.

Delia was asked by this newsroom whether, if the case doesn't go in his favour, he would intend to file an appeal.

He said that it depends on the extent of a judgement. "At this point in time I am not considering what is going to happen afterwards as I am confident that the case will be won." He said he is confident from a legal perspective as "I think we have been able to put forward all the evidence to substantiate our claim."

"In my mind it’s premature to speak about an appeal."

This newsroom also sent questions to Steward Health Care, asking whether it would appeal if it loses the case and whether it will continue in talks with the government to change the original agreement if it wins, among other things.

A Steward Malta spokesperson said: “We have no comment to make on ongoing legal proceedings at this time. Steward Health Care Malta is committed to providing quality health care to the people and communities of Malta and we are working constructively and positively with the Government of Malta to invest further in medical facilities in Malta and Gozo.”

The last court sitting was held on 25 October last year and the case was put off to 31 January for judgement.

Steward Health Care and the government had previously been in discussions over possibly amending the original concession agreement.

But in a statement on 23 May 2021, the company had said that it was “surprised by the Health Minister’s statements in the Maltese Parliament supporting the current contractual terms of the hospitals’ concession, which have been widely acknowledged by independent observers – both within Malta and in the European Union – to be wholly unsuitable and inappropriate. In fact, two different administrations with the same Health Minister throughout have, over three consecutive years (2019, 2020 and 2021), negotiated complete agreements with Steward Malta specifically in order to put the flawed original concession agreed with Vitals Global Healthcare (VGH) on a viable footing – clearly acknowledging that the current framework is unworkable. Unfortunately, the government failed to finalise these agreements, meaning that the Maltese people have not been able to benefit fully from the outcome of a viable concession. Had the government’s early commitment to renegotiate been brought to successful conclusion, the much-needed new hospitals would now be nearing completion.”

The existence of a 2019 side letter had been revealed by MaltaToday, that turned any termination of the concession into a government default, and could result in government having to pay €100m to the company in such a case.

Prime Minister Robert Abela had said, back in 2021 when asked about the €100m, that if Steward were to choose to leave the concession, “the government will do everything legally possible to avoid paying that amount”. He had said he got to know about this 2019 agreement only after it had been signed.

The original concessionaire, Vitals Global Healthcare, had been quite controversial. The National Audit Office, in a statement about an audit report it published in 2021 regarding the concession awarded to Vitals Global Healthcare by government, had said: “None of the major concession milestones were achieved when the concession was under the VGH’s control. The VGH’s inability to secure financing was the crucial shortcoming on which rested all subsequent failures registered in this concession by government.”