The health ministry has been scoping out St Philip’s Hospital with a possible long-term plan to purchase the defunct medical centre in Santa Venera as strains mount on the health sector.

Times of Malta has learnt that two on-site visits were carried out in April, to assess its state of repair.

A spokesperson for the health ministry confirmed it had “conducted two separate evaluation exercises on the former St Philip’s Hospital, one through the Foundation for Medica Services (FMS) and another through an independent firm”.

As a public entity, FMS is tasked with designing and delivering healthcare infrastructure on behalf of the government.

A ministry spokesperson said the evaluations were carried out “without any commitment” and “for any possible further considerations”.

“There are ongoing court procedures regarding this site and the ministry awaits their conclusions before considering further action,” it said.

Sources confirmed that the owners have not received any formal offer.

“No negotiations took place, nor was any offer put on the table. The health ministry simply wanted to test the waters.”

Frank Portelli, director of the Golden Shepherd Group which operated the hospital, said the company would be willing to sell, provided the offer is “decent”.  

“We wouldn’t accept anything less than €21 million because the creditors need to recoup their money,” he said.

Portelli is a medical doctor and a former PN official.  Since 2020, the company has been run by two court-appointed administrators.

Last November, Judge Ian Spiteri Bailey ordered the liquidation of Golden Shepherd over debts it was unable to pay back. 

Government sources told Times of Malta that the interest shown in St Philip’s is due to its strategic location. It lies halfway between Mater Dei and St Luke’s, which would make its conversion into a rehabilitation facility ideal.

We wouldn’t accept anything less than €21 million because the creditors need to recoup their money- Frank Portelli

However, no mention was made of St Philip’s or any other medical facility in May when the government revealed its plans for Mater Dei, St Luke’s and Karin Grech hospitals.

Portelli insists that St Philip’s can play an important role in addressing current hospital issues by cutting waiting times at Mater Dei. 

“With waiting times that go up to 12 hours, Malta needs another hospital. Doctors and nurses do their utmost but the pressure is too much. The population has doubled but the hospitals and the medical resources have not.  This is where St Philip’s can help.”

Portelli claims that a newly-refurbished St Philip’s can be up and running within six months. “It could offer emergency services, day care and all that.”

Other assessments are less buoyant. 

'Hospital is structurally sound'

“In spite of acts of vandalism, the hospital is structurally sound with no chance of collapse but the interiors are what they are and a general re-fit is necessary,” a government source said.

The interest in St Philip’s bears resemblance to plans of the Lawrence Gonzi-led administration to buy the hospital, which fell through in 2012. 

Portelli confirmed he has held conversations with Health Minister Jo Etienne Abela on the potential revival of the 2011 cabinet decision to acquire the hospital, but he insisted that the interests of the creditors must be protected.

Among the creditors is HSBC Bank Malta (Ltd) with claims of up to €13 million, although the amount is disputed by Portelli. 

The site on which St Philip’s sits is a valuable piece of real estate but the original deed of lease, entered into between a PN government and Golden Shepherd Ltd in the early 1990s, prevents it from being used for any other purpose other than medical.

The hospital closed down in 2012 after running into financial difficulties. 

That same year, Portelli believed he had struck a deal to lease the property to government for €850,000 a year for eight years. 

The government had also negotiated an option to buy the hospital for €12.4 million.

The price was set following assessments by PricewaterhouseCoopers and KPMG but the deal fell through at the very last with a general election on the horizon.