A combination of ventures that are either in the pipeline or at the planning stage suggests the government is attempting to incubate a new economic niche: medical tourism. If the idea takes shape, it will be an important development in the effort to diversify further the economy. Besides, it will also help to solve the chronic bed shortage problem.
The plan announced by the government involves not only the creation of what it is describing as new medical hubs in Malta and Gozo but also the opening of a medical school by Barts and The London School of Medicine and Dentistry.
Coinciding with the announcement of this plan, there has also been news that Maltese-Italian investors plan to build a 200-bed hospital at Smart City. In addition, it has also been announced that an American company is buying Saint James Hospital whose former owner now plans to open a new hospital in Bulebel to replace the one which he has in Żabbar.
The government plans to involve private investors and the health minister has already announced that at least four international companies have expressed an interest in running private hospitals. The plans for the creation of new hubs are in addition to the building of a new block at Mater Dei Hospital.
As is usually the case in projects of this scale, various matters have yet to be clarified. But the way the government has been talking of its plan gives the impression that it may have already struck an informal deal with parties interested in the project, or parts of it. For the government to quantify the investment needed (€200 million), it must have already worked out detailed plans of the new hospital facilities and services needed. Who made the estimate? The chosen bidder will have to fork out the capital expenditure needed to set up the medical hubs and to run them. The government will pay for the beds it will use as part of its general health service but it is not clear whether it plans to make any direct investment of its own, besides, of course, that involved in the building of the new block at Mater Dei.
According to Queen Mary University of London, the Barts wing that will open on the campus in Gozo, the government “will be investing heavily in new facilities in Gozo in the coming year, including new student accommodation”. Since the government has not said anything about this so far, it is proper to ask what, exactly, is going to be the government’s share.
Describing the school that is opening the Gozo campus as the “Barcelona football club” of healthcare, the Prime Minister said the healthcare sector had a number of problems when his party took office but the government had a plan to address these.
In reality, it did not have any reliable plans at all and the only problem it appears to have solved is the shortage of State-funded medicine.
This is not to minimise the importance of the plans now in hand to promote medical tourism. However, the development of hubs and the creation of a medical environment that will contribute to the provision of medical services of such a standard that will draw people from abroad to seek medical care in Malta may take years to establish.
It would therefore be wise on the government’s part to exercise caution so as to avoid making more mistakes than it has already made in its two years in office.