Vitals ordeal stinks to high heaven, PD says

The Partit Demokratiku yesterday lashed out at Thursday’s announcement that VGH sold its concession for the running of three Maltese hospitals to an American firm less than two years into the project.

While satisfied that the health services concession contract awarded to Vitals Healthcare (VGH) “is now in the hands of a recognised healthcare group with a track record in the field,” it expressed concern about how this was handled.

The PD noted that in the two days since Parliament rose for the Christmas holiday recess, “The government has conceded - in part or in full - two essential service agreements; that of Electrogas and Vitals. It seems that it has become a habit that whenever Prime Minister Dr Joseph Muscat wants to avoid parliamentary scrutiny and public attention, he does so when it is extremely expedient for him.

“The Vitals ordeal stinks to high heaven, not only since the owners are unknown, but also as it seems that VGH never had the intention to honour such a contract. Moreover, government’s lack of accountability has accentuated this opinion.”

PD noted that good practice means that concessions are not sold on by the company holding a concession.

“It can transfer a small shareholding of the work of that concession up to a qualified (proportionate) amount, e.g. 10%. Deputy Prime Minister Chris Fearne has stated that in the case a complete transfer is made in the first five years of the concession, the government is authorised to give the green light. This is not on. It should be the health regulator that gives its approval in such an eventuality at all times, and not only in the first five years.”

PD proposes that such contracts should always go through Parliament’s Public Accounts Committee. The PD also posed a number of questions:

“Why was the contract awarded in the first place to Vitals if, as it seems, they are unable and do not have the capacity to fulfil the terms of that contract, contrary to what the government announced at the time of signing it?”

The PD also asked whether there was a need for a health services concession, “at a such a cost to the Maltese public when it is common knowledge that the price government is paying and accepted by the then Health Minister Konrad Mizzi are higher than it would have cost it had it been the main operator, and does not cover certain costs like wages, some operations etc?”

The PD also asked how much VGH has invested to date, and how much government spent over the past two years.

“How much of the supposed investment by Vitals been recycled government funds?”

The PD also say that VGH was unable to deliver on the terms of the contract, mentioning that the Barts Medical School which needs to be hosted in a government sixth form building “as the Gozo general Hospital could not accommodate it.” They asked whether the contract, as such, is null and void.

The PD ask whether it would have been better for government to rescind the contract and renegotiate more advantageous terms than the government currently abides by?

“Vitals would never have sold on the contract to another private healthcare provider unless there was a profit in it for them, and a profit in it for Steward Healthcare. Does this again indicate that our public healthcare delivery system and the Maltese Public are not being given value for money? What is the profit that vitals made?”

The PD also asked whether the reason why the original contracts were presented in Parliament were heavily redacted was “because it was known there was a possibility of the concession being sold on.”

“In order for these questions and many others to be answered we urge the government to publish the health services contract in its entirety as soon as possible. Incomplete information leads to rumour and doubt. The history of this saga does not diminish it.”