St Luke’s: huge potential but no longer as hospital

St Luke’s Hospital was never considered a potential site for a rehabilitation hospital because the Government plans to turn its grounds into a large-scale “financial or educational city”.

Finance Minister Tonio Fenech touched upon this vision during yesterday’s meeting of the Public Accounts Committee.

The session was called to discuss an impending deal to turn the privately owned St Philip’s hospital into a government-run rehabilitation facility.

Mr Fenech also announced that, contrary to the Government’s earlier statements, the PAC would be given the opportunity to scrutinise the final contract before it was signed, rather than after.

St Philip’s hospital owner Frank Portelli must iron out certain issues flagged by the Attorney General’s office before the contract could be finalised and presented, he said.

He was unable to provide a more specific timeframe.

Health Ministry permanent secretary Kenneth Grech revealed that officials were directed not to consider turning St Luke’s into a rehabilitation facility.

The Finance Minister immediately interjected, saying that when Mater Dei opened, the Government had made a strategic decision to steer the old hospital’s grounds away from medi-cal functions.

“We believe the grounds have huge economic potential and the area is among a number which we present to potential investors,” the minister said.

Karin Grech Hospital was not there for the long-term, Mr Fenech continued.

He said ideas such as turning the area into “a financial or educational city” had been mooted and suggested progress had been stunted by the international financial crisis.

Foundation for Medical Services CEO Brian St John said a number of other sites had been considered but it would be much more expensive to build a rehabilitation hospital from scratch than take over a ready-built structure.

The Government estimates that it can extend the 100-bed St Philip’s to hold 260 beds for about €25 million.

Mr St John yesterday said that according to FMS calculations, building a 260-bed rehabilitation hospital adjacent to Mater Dei would have cost some €54 million.

Before the Government can extend St Philip’s it must acquire the necessary permits.

A Finance Ministry official said the planning authority had indicated it was “very unlikely” they would be refused outright but Mr St John admitted “the application process hasn’t started yet”.

PAC chairman Charles Mangion said it would be “madness” to invest in the venture without knowing whether the hospital extension could go ahead.

He hoped the final contract would provide for this eventuality.

A third request by The Times to visit St Philip’s was refused by hospital owner Dr Portelli yesterday, who insisted a visit would only be allowed once a signing date had been set.