Abela insists hospitals' running cost matches Steward's price, despite estimates

Prime Minister Robert Abela was unable to explain the significantly lower sum that government is projected to spend to run the Gozo General Hospital when compared to 2023's operational costs when the hospital was administered by Steward Healthcare.

Government's budget estimates published on Monday show that while the cost of running the hospitals stood at €50,424,000 in 2023, this is expected to decrease to €42,994,000 in 2024. Budget 2024 comes exactly one week after the Court of Appeal had dismissed Steward Healthcare’s appeal against the decision to annul the hospitals' privatisation deal.

When asked about this, Abela stated that there are no discrepancies between the funds that were given to Steward and what government is spending to operate the hospitals in its stead. Abela insisted that one of the main problems between government and Steward was that the latter kept arguing that its operations were not viable against the price it was being paid.

The Prime Minister was taking questions from reporters during a post-budget press conference.

Asked about the presence of cartels in the Maltese economy, something the Finance Minister himself spoke about a few days ago, and the budget's lack of measures to address the situation, Abela limited himself to saying these were unacceptable.

Meanwhile, Clyde Caruana said these situations are natural given the small nature of the Maltese economy but insisted the way to respond to this abuse was through dialogue which would lead to responsible operators within the market to refrain from profiteering off international price rises.

Abela stated that next year’s budget was planned on the needs of the people, as he noted that Budget 2024 tackles the families’ and workers’ most difficult challenges.

“This is a budget that attacks inflation and the rising cost of living,” Abela said, listing a number of measures including the doubling of eligible individuals for the second COLA mechanism.

Abela said next year’s budget will be implemented in a difficult time, citing the wars in Ukraine and Israel as two major global challenges at the moment.

Meanwhile, Deputy Prime Minister and health minister Chris Fearne said that Budget 2024 will affect everyone, including, the middle class, businesses, and students among other groups.

Referring to specific measures, Fearne mentioned government’s €500 and €1,000 bonus for every first and second child each family has, stating that this would help curb Malta’s low fertility rate.

On health, Fearne stated that this budget boasts the highest expenditure in the health sector, nearing €1.1 billion. The health minister said that government also looks forward to see how it will continue to develop the Gozo General Hospital, as well as St Luke’s Hospital. The budget makes no plans for a new hospital in Gozo.

Finance minister, Clyde Caruana said that contrary to other governments, this government is choosing not to let anyone drown in the face of unprecedented economic challenges by maintaining the hefty energy and fuel subsidies.