Steward Submits New St Luke’s Master Plan Which Demolishes Major Structures Including Karin Grech
Steward’s master plan for St Luke’s Hospital, which looks to demolish Karin Grech Hospital and a large swathe of existing buildings to erect new ones, has been submitted to the Planning Authority.
According to the updated master plan, five new buildings will replace several existing structures within the facility in a radical transformation of the privately-run state hospital.
However, no specific details are given on the operations of the five new buildings.
Areas within the facility will also be heavily refurbished, including the St Luke’s Hospital, which will be extended to 462 beds, the mortuary and the car park.
Other areas are earmarked for demolition, with the hospital’s chimney also being removed under the new master plan.
The master plan
Steward has eyed a revamp of the hospital ever since taking over Vitals Global Healthcare.
Plans had been submitted before but stalled and were suspended amid government negotiations over the controversial concession.
It remains to be seen how the situation will develop, with MP and former PN leader Adrian Delia still pursuing a case to see the concession voided.
The demolition plan
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This included a massive €100 million buyout should the concession be rescinded and a secret €8 million bank guarantee (which has since been waived).
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.
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.
The government has been locked in negotiations with Steward over the contract, but it seems unlikely that a compromise will be reached anytime soon.
What do you think of the master plan?
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