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Malta’s Hospital Concessionaire Steward Gets €80 Million Allocation In Budget Estimates For 2023

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Steward Global Healthcare has been allocated €80 million in the government’s latest budget estimates for 2023. 

According to the draft financial estimates for 2023, Steward will receive €50.4 million and €29.1 million for its concessions to the Gozo General Hospital and the Karin Grech Rehabilitation Hospital respectively.

It’s an increase of roughly €10 million from the previous year, which was an increase of €41 million from the year before. 

“Budget 2023 – Steward: €80 million more. The population: €17 million less,” MP Adrian Delia, who instituted a case to rescind the deal while PN leader, said. 

The fees are used for a multitude of fees, with the government effectively paying all the salaries of the staff employed with Steward.

Steward Global Healthcare had taken over the concession from Vitals Global Healthcare following years of controversy.

It has been mired in corruption claims and is currently subject to a magisterial inquiry, with the government signing a Memorandum of Understanding with VGH months before a request for proposals.

VGH was forced to sell off their operations just 21 months after starting amid growing financial debt, which stood at €36 million by the end of 2017. Its CEO, Ram Tumuluri, reportedly still made off with a €5 million bonus.

An un-redacted contract revealed that taxpayers were paying VGH around €188,000 a day (€70 million a year) to provide hospital beds to the state, €1.2 million a year for the Barts medical school and a further €1 million for a helicopter service.

Steward Healthcare was brought in to replace them, with VGH unable to pay its employ. They were given certain assurances by the government, namely from Mizzi and Muscat when they were brought in to save the failing concession.

This included a massive €100 million buyout should the concession be rescinded and a secret €8 million bank guarantee (which has since been waived).

Muscat was also paid €60,000 from Accutor AG and Spring X Media, two Swiss companies owned by Pakistani lawyer Wasay Bhatti, in the early months of 2020, shortly after his resignation as Prime Minister.

Accutor AG had received €3.6 million from Steward Healthcare during the company’s takeover of the hospital contract from Vitals Global Healthcare.

The deal has created massive gaps in operations. Meanwhile, the government continues to fork out millions for a service that is not too dissimilar from Malta’s national health service.

Delia has instituted court proceedings calling on the courts to cancel the contract. 

The government has been locked in negotiations with Steward over the deal, but it seems unlikely that a compromise will be reached anytime soon.

What do you think the fund?

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Julian is the former editor of Lovin Malta and has a particular interest in politics, the environment, social issues, and human interest stories.

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