Dénia hospital buyout

Regional health authorityseeks to de-privatise Marina Alta medical department before May, and proposes capital acquisition to avoid multi-million penalties for breaking off franchise contract

MARINA Alta health centres and the district hospital will be de-privatised 'before the elections', according to the regional government, and a possible provisional deal has been struck between it and the main shareholder.

With the regional and local elections on the same day – May 26 this year – health authorities in Valencia have their work cut out.

Breaking off the franchise contract with the hospital management company Marina Salud before the due date, at the end of 2023, would cost the taxpayer millions in penalty clauses, but regional health minister Ana Barceló has reportedly come up with an alternative plan.

Dénia department of health is 65% owned by medical insurance company Deutsche Krankenversicherung (DKV) and 35% by Ribera Salud, the company which managed the Ribera Alta district hospital in Alzira for over 20 years until last April.

This joint venture forms the firm Marina Salud.

Sra Barceló has been in talks with Ribera Salud about the government's buying both firm's shares.

In principle, Ribera Salud appears to be in favour of selling off its 35% before the end of this month or possibly early February, and both seem confident DKV would also agree.

A regional healthcare law means the government gets first refusal in buying hospital shares and limits the holding of any private-sector entity to 40% of the capital so as not to interfere with public-sector management of district medical services.

And DKV has long been hinting at disposing of its shares in Dénia hospital in light of the losses the venture has been incurring for the insurer.

Ribera Salud wanted to be first in line to acquire the capital, but the regional law prevents this if the government wishes to do so.

Hospital 'snagging list' dispute could block deal

But the deal may well be complicated by a law suit brought by Ribera Salud against rebates due to the regional government in the sum of €100 million as a result of a disputed 'snagging list'.

The healthcare law requires that all private-sector concessions return hospitals and health centres to the government in the condition they were found in and having fulfilled the terms of their contracts.

But Barceló's team – then run by Carmen Montón, who left to become State health minister in June before resigning weeks later – found a series of defects in Alzira and Dénia and, in the latter case, Marina Salud has failed to build GP surgeries in Pedreguer, Calpe and Dénia in line with the original franchise deal.

In total, the company was set to be given a bill for €300m for Alzira, Dénia, and its other two privatised health departments in the region, Torrevieja and Elche-Crevillente.

But Ribera Salud disagrees with the amount and the case has gone to the Supreme Court, the highest contentious audience in Spain.