On several occasions since 2018, the government informed the EU that a negotiated solution with Steward Malta was imminent, but a conclusion has yet to be reached.” As a result, the concession had to be placed back onto the government’s balance sheet, meaning that Steward Malta cannot finance and build new hospital facilities within this structure. Steward Healthcare is now saying that the concession it agreed to acquire is not fit for purpose: “The concession does not fall within PPP parameters as dictated by EU rules. While Health Minister Chris Fearne stated that the concession “ is what it is” and cannot be changed, the concessionaire claims that the poorly drawn-up concession “does not fit within public-private partnership parameters under the relevant EU rules” to justify its lack of investment. In the last Budget, the annual government allocation to the company was €90 million, while taxpayers also cover staff costs. He also referred to Barts Medical School (opened in 2019) and a “comprehensive staff and training development programme” as two other examples of investments the company has made. When The Shift put to Steward Healthcare the problems voiced by patients and staff in the hospitals it manages, the company referred to 25 ventilators for the Gozo Hospital’s critical care unit to help safeguard against COVID-19, a 29-bed ward at Karin Grech, and an upgrade of the emergency and outpatients departments at the Gozo General Hospital, among the upgrades that cost €6 million. The government is blaming Steward Healthcare for failing to fulfil its end of the bargain, while Steward Healthcare is blaming the government for not wanting to renegotiate the terms of the €2 billion concession the company took over from Vitals Global Healthcare for a pittance. None of these investments addresses the core issues being faced by patients and staff members, given that Karin Grech Hospital, in particular, was “originally scheduled for demolition when Steward Healthcare took over the concession”. The Shift’s questions to Steward Healthcare about the conditions at Karin Grech and Gozo General Hospital were answered by a PR agent saying, “we have sustained services at Karin Grech as best we could while acknowledging that certain aspects of the facilities are no longer fit for purpose”. The concession agreement was described by Steward Healthcare itself as “ fraudulent and corrupt” and has led to a deadlock between the company and the government. Replying to questions by The Shift after the news portal reported the conditions at Karin Grech and Gozo hospitals through pictures sent in and interviews held with patients and staff, Steward Healthcare insisted it cannot invest in meeting the terms of the concession it accepted, insisting on a renegotiation that the government has denied so far. Steward Healthcare is insisting it will not invest in major upgrades needed due to the government’s reluctance to renegotiate the terms of the concession, even after The Shift reported complaints by patients and staff on the conditions endured.
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