Health Minister reassures patients, hospital employees as Steward court ruling looms

Health Minister Chris Fearne has insisted Steward hospital employees will not be affected by the court’s judgment on the concession agreement expected to be handed down on Friday.

The concession agreement involves the St Luke’s, Gozo and Karin Grech hospitals, which are run by Steward Healthcare.

“Whatever happens, the stellar service offered by our hospitals will not be disturbed, and employees’ jobs will not be affected,” Fearne said in parliament on Wednesday during question time.

The health minister was answering a parliamentary question by Nationalist MP Beppe Fenech Adami, who asked about reports that a team was in place to take over the running of the hospitals in the eventuality that the court rescinds the hospitals deal.

The court case was filed in 2018, by Adrian Delia, then leader of the Opposition, in a bid to force the cancellation of the 99-year emphyteutical concession agreement  on the basis that the concessionaire, Vitals Global Healthcare and their heirs in title, Steward Healthcare, had not fulfilled their contractual obligations. Mr Justice Francesco Depasquale will decide on Delia’s request on Friday.

Delia had argued the contract itself was vitiated because Vitals were in talks with the government before the tender process had even started. This had been an issue flagged by the National Audit Office in its investigation of the tender awarding process.

The public hospitals’ concession had been negotiated by Konrad Mizzi, the health minister at the time. Vitals Global Healthcare (VGH), at the time an unknown consortium, had been selected to take over the running of the three public hospitals. They were to receive millions in euros but had several obligations, including the construction of a state-of-the-art general hospital in Gozo.

Fearne said he would not comment on the court decision so as to not influence proceedings. He also avoided discussing what will happen to the termination clause introduced in a side-letter by former minister Konrad Mizzi that could potentially see Steward walk away with €100 million if the contract is shot down by the court.