Steward says quality of care at risk in row over hospitals
Steward Health Care Malta has warned of a risk to “quality of care” unless there is an “orderly” handover of control of three hospitals it has been running as part of a controversial deal annulled by a court in February.
The US healthcare giant and the government are involved in a legal dispute over how Karin Grech, Gozo General and St Luke’s hospitals are to be handed back to the government.
In a vague statement last week, the government said it had defeated an International Chamber of Commerce Emergency Arbitration proceeding brought by Steward.
According to the ICC website, this procedure offers a short-term solution for parties that are unable to wait for the constitution of an arbitral tribunal. Any emergency measure granted takes the form of an order.
The government did not comment further on the matter but Steward Health Care Malta (SHCM) said yesterday that the decision that it would bear the government’s costs in no way prejudges “the merits of the claim”.
Steward said it had filed for emergency arbitration with the International Chamber of Commerce on March 29 as a result of serious concerns surrounding the escalation of the termination dispute and its impact on the necessary handover process.
The complex transition, it said, involved legacy contracts, IT infrastructure and HR transfers among many other matters.
“Should an orderly transition not be conducted, the quality of care could be impacted. SHCM has always acted in the interest of its patients and the community and has relied on its substantial experience in this matter,” it insisted.
It said that the government’s lack of experience in this transfer process and its hesitancy to engage with Steward, despite public statements of its intent to secure an “immediate handover”, was concerning and led to an unnecessary delay in the transition.
“To be clear, economics were not a topic of discussion,” Steward said.
It added that the terms of the arbitration were considered confidential.
“The Government of Malta’s statement issued on 14 April 2023 continues to highlight the Government of Malta’s deliberate and calculated manipulation of the narrative and a disregard for upholding international standards.
“SHCM notes the decision of the ICC in no way prejudges the merits of the claim. It also notes that, as the transition process moves forward, the government will bear the medical legal responsibility in any decisions made unilaterally.”
Steward said it remained committed to a fair and orderly transition and, as much as it was permitted, would ensure that the well-being of patients and employees remains a priority.
Last week, it also filed a formal complaint to the European Commission against the government and the judiciary for infringement of EU law, on several grounds.
This came after the court annulled the concession agreement through which Vitals Global Healthcare and later Steward took over the hospitals’ management.
The court found that the concession to run the hospitals was fraudulent throughout, including when it was handed over to Steward.
Steward has appealed that verdict, arguing that it was defrauded by the Maltese government and punished by a biased court.
“The government’s lack of experience in this transfer process and its hesitancy to engage with Steward was concerning