‘We’ve Long Stayed Quiet’: Steward Hits Out At Maltese Media Reports Over Medical School Plans
Steward Health Care International, a global healthcare giant and the parent company of Steward Health Care Malta, has hit out at reports that it planned to sell off Barts Medical School to an American real estate company.
“[We have] long stayed quiet in the face of inaccurate reporting on its concession in Malta for the sake of our patients, focusing instead on our core mission: to deliver quality healthcare to the communities we serve,” SHCI said in a statement.
“However, SHCI forcefully disputes the inaccurate article by Malta Today published on 30 January 2022, after it knowingly published a series of false and misleading claims about the company and an unsigned, draft MOU that was never executed much less pursued.”
“The claims in the article are plainly intended to undermine the public’s confidence in its health care system as well as damage the company’s standing in Malta and abroad.”
On Sunday, MaltaToday reported that a memorandum of understanding drafted by former Prime Minister Joseph Muscat’s administration would have allowed Steward to sell Barts to Medical Properties Trust, a major US real estate investment trust that provides capital to hospitals.
Health Minister Chris Fearne
The report said that Steward had planned to use the money generated from this sale to cover its loans and then lease Barts back from Medical Properties Trust.
MaltaToday reported that the MOU was approved by Cabinet, although Health Minister Chris Fearne had “raised some objections” about what rights the trust will enjoy over the campus once the concession expires. However, it was never signed or enacted.
Steward said the MOU was drafted to help it renegotiate and “professionalise” the terms of the concession, which was originally granted to Vitals Global Healthcare.
“The original terms have been described by the Government of Malta itself, the EU and the National Audit Office as ‘unbankable’, not based on correct information, and not fit for purpose,” Steward said.
“Indeed, had the MOU been agreed to by the previous government, there would be a bankable concession in place that does not violate EU requirements for public-private partnerships (PPPs) and the facilities would be nearing completion. Malta Today also omits the clear benefits to the Maltese people intended by the draft MOU, which was discussed in good faith.”
Steward said the unsigned MOU suggested multiple methods of improving the concession, including a potential deal to sell portions of the leasehold of Barts to Medical Properties Trust, with the government maintaining ownership and oversight of the medical school.
“This opportunity, which was heavily supported by the Government, Malta Enterprise, and the Bank of Valletta at the time, would have brought foreign direct investment to Malta, improved the standing of the financial institutions involved and boosted the local economy,” they said.
“The article wrongly claims that SHCI would ‘hive off’ the campus. This is patently false. At no point would the Government of Malta forfeit ownership of any aspect of the concession, including the Barts Medical School, as described in the article.”
“On the contrary, the overriding purpose of the draft MOU was to ensure the ongoing scrutiny and retention of oversight by the Government over the activities at the Barts Medical School, while freeing up working capital to invest in the operations of the concession and deliver for patients.”
“The way the article was written, leaves the reader with a false impression of the realities of the opportunity and the intentions of SHCI.”
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