Health service a priority in VGH concession, says Fearne, when asked on political responsibility
Deputy Prime Minister Chris Fearne has insisted that the government is obligated to see that the health service concessionaire, whether it be VGH or Steward, gives patients a satisfactory health service.
He was asked whether anyone should be held politically responsible for the selling off state assets to VGH, a company that appears to be financially incapable of managing the project, and which had no previous experience in the healthcare industry.
In fact, he explained, a unit was created in order to ensure that key performance indicators are reached.
“The work has already started and will continue under Steward Health Systems.”
VGH, which was entrusted with the provision of healthcare services at the Gozo, Karin Grech and St Luke’s hospitals, is in the process of selling its 30year concession just 21 months into operations.
A parliamentary question previously revealed that the government had provided VGH with €49.5 million in salaries, medicines, and other items since the start of 2016 (€16 million in 2016 and €33.5 million in 2017).
Minister Fearne confirmed that the government would continue maintaining the payroll of staff regardless of who the concessionaire was.
Asked to further break down these costs, a Health Ministry spokesperson said that in 2017 the Ministry for Health paid €23,437,701 for services at the Gozo General Hospital and €10,118,114 for services at Karin Grech Hospital.
“Within the old St Luke’s campus numerous projects are already underway. During the past year a new Stroke Unit was inaugurated at Karin Grech Hospital and a new OPU unit is also up and running. While the refurbishing of the old medical school is ongoing,” the spokeswoman said.
Asked specifically the amount VGH invested into the project out of its own capital, Fearne said that the concessionaire is obliged to pay €220 million in infrastructure and provide a €90 million investment into equipment (maintenance is also calculated) throughout the 30 year concession, without providing any detail on the exact amount of funds injected by the failing company.
“The contract stipulation that VGH provide up with a new hospital in Gozo, the refurbishment of Karin Grech and the rehabilitation hospital along with other units in St Luke’s, Barts Medical School, a new health centre in Gozo, a new nursing school in St Luke’s, among other projects.”
Sources within the healthcare industry have told The Malta Independent that VGH sold its 30year concession for the three state hospitals and Barts Medical School after experiencing significant financial difficulty, despite repeated assurances from the owners that funds would be injected into the company.
Reliable sources have also said that Minister Konrad Mizzi, who was the health minister until he was stripped of this remit when he was exposed to have an offshore account in Panama; and is the current Minister for public private partnerships, was aware that VGH was in dire financial straits and consequently unable to meet its construction deadlines for almost a full year.
Questions sent to VGH remained unanswered by the time of going to print.