Four international companies had approached the government with interest to operate private hospitals and develop medical tourism, Health Minister Konrad Mizzi has disclosed.

He said these were investor groups, which included a company that owns hospitals around the world, a health-related investment fund and insurance companies.

Speaking in the wake of government’s plan to attract a €200 million investment in the Gozo general hospital and St Luke’s Hospital, Dr Mizzi told The Sunday Times of Malta the companies had “a pipeline” of patients through links with insurance firms.

However, he denied the ambitious investment plan was a done deal. The interest shown by the foreign investors had spurred the government to look at a public-private partnership model for healthcare services, he added.

Industry sources told this newspaper that over the past 12 months investor groups were eyeing St Luke’s Hospital, in particular, with considerable interest. However, they cautioned it was the detail that mattered in any public-private partnership model.

This was also the concern reflected by health shadow minister Claudette Buttigieg in Parliament last week.

But Dr Mizzi insisted every aspect of the prospective agreement would be defined in the request for proposals the government is expected to issue in two weeks’ time.

“The company has to show it has the finance and experience to operate medical facilities.”

He said the agreement with the operator would stipulate that a number of beds will be reserved “at all times” for the exclusive use by the public healthcare system.

Asked about the risk of unequal treatment of patients by the private operator, Dr Mizzi said the “service levels” expected by the public health system will be clearly defined.

Being able to use the goodwill of Barts as a pull factor is significant

“We want to avoid disparities between paying patients and those placed there by the government,” he said.

However, he insisted the cost to the government would not be equivalent to the fees paid by medical tourists.

Without elaborating, he said the cost of the public health service beds administered by the private operator will be fixed and largely at par with what the government currently spends at the Gozo Hospital and Karin Grech.

Dr Mizzi said the government will give the land and buildings in Gozo and St Luke’s on concession and the chosen investor will pay rent.

“The rent is still being finalised but it will be fixed in the request for proposals so that bidders will not be competing on this aspect,” he said.

Dr Mizzi said works on the public aspects of the project had to be concluded in three years from when the private operator obtained planning permits.

The work in Gozo is expected to take the longest because it requires the construction of new buildings rather than a refurbishment of existing facilities.

Dr Mizzi confirmed the agreement signed with Barts, a faculty within Queen Mary University of London, last Wednesday to open a medical school in Gozo was distinct from the proposed €200 million investment.

Barts will not be responsible for the construction of the medical school, which will be built by the private operator.

Dr Mizzi said the type of works required for the medical school were agreed with Barts and these will be included in the request for proposals.

He said Barts will be paying the operator a commercial lease to cover the €10 million cost to build the school and campus.

The agreement with Barts also stipulates that Malta and the private operator could make use of the university’s brand to attract medical tourists to the islands.

“Being able to use the goodwill of the Barts brand as a pull factor for medical tourists is significant for us,” said Dr Mizzi.

The medical school is contractually bound to operate for 15 years with a full complement of 300 students. Barts is also expected to take up space at the government’s Life Sciences park in San Ġwann for research purposes when this is ready.

Dr Mizzi said a contingency plan was agreed with Barts to continue using existing facilities within the precincts of the Gozo Hospital until the medical school was built.

As things stand the only finalised agreement is with Barts, with the success of the wider healthcare plan depending on whether investors will be interested in taking up the government’s offer.

Dr Mizzi is aware that a private operator will be looking at the bottom line. A commercially successful operation will hinge on the ability to attract paying medical tourists but he is confident the plan will succeed.

Foreign nurses being considered to fill the gaps

The government is exploring the temporary recruitment of foreign nurses to fill gaps that will be created by the proposed healthcare plan, according to Chris Fearne.

The Health Parliamentary Secretary acknowledged the project would increase the pressure for additional human resources and the authorities were in discussion with the nurses union to evaluate different options.

Mr Fearne said the St Luke’s Hospital project also foresaw the possibility of setting up a new nursing school “to buttress” current nursing graduate numbers.

“Unfortunately, the health system still suffers the consequences of the previous administration’s ill-thought decision to impose a numerus clausus between 2006 and 2011 on nursing graduates,” he said.

Asked about concerns raised by medical students over pressure on University of Malta lecturing staff created by the opening of the Barts medical school, Mr Fearne said the Barts programmes will be taught and delivered primarily by staff from Queen Mary University.

Mr Fearne said Barts will make a major contribution to medical education in Malta and the development will provide opportunities for Maltese lecturers.

“The Health Department remains firmly committed to facilitate academic synergies between the University of Malta and Barts medical school… the cross-fertilisation of ideas between institutes is an exciting new development to come.”

kurt.sansone@timesofmalta.com