Updated 3.40pm, adds NAO's rebuttal

The government's deal with Steward Healthcare for the running of three public hospitals has failed, and the government should 'stop the bleeding' of funds that could be better used, the doctors' union said on Tuesday.

The Medical Association of Malta also expressed concern about problems being caused to hospital consultants who are being asked to take students from Barts medical school on their rounds. It said it had told the consultants to decide for themselves whether to take up such students. 

MAM president Martin Balzan told a press conference that the building of Barts Medical School in Gozo had been completed, at considerable cost to taxpayers.

"The building was apparently built by Steward, resulting in an expense of €35 million for the taxpayer. The estimated costs after excluding the value of the land were unlikely to actually exceed €3 million," he said. 

Apart from the costs of the medical school, Dr Balzan said nothing had resulted from the promised €200m investment in a new general hospital in Gozo, rehabilitation of Karin Grech Hospital and the refurbishment of St Luke's Hospital.

"While both Gozo and Karin Grech Hospitals are begging for basic maintenance, St Luke's is in a state of abandonment," he said.

Dr Balzan speaking at the MAM press conference.

The union, he said, was disappointed that the National Audit Office had not investigated the transfer of those hospitals, first to Vitals and then to Steward. The inquiry had been requested by the parliamentary Public Accounts Committee. 

That statement prompted a rebuttal from the NAO later in the day (see below). 

Touching on government subsidies to Steward, Dr Balzan said that as shown in the government's financial estimates, after excluding salaries, there had been a progressive increase in disbursements, now amounting to €50 million a year.

He said a middle grade Steward official had even told some doctors that unless this was raised further, Steward may leave Malta.

"The public-private partnership for the running of hospitals has failed and this is being acknowledged by the government itself through its decision to directly run and fund the new outpatients' block and the new psychiatric hospital," Dr Balzan said.

The MAM, he said, was asking the government to 'cut its losses'.

It should revert to directly running the hospitals because that had been the best model, he said. Savings made as a result should be channelled for the purchase of the latest medicines and equipment, stopping a situation where some diseases seemed to be given more attention than others.

NAO rebuttal

The NAO said in a statement on Tuesday afternoon that it failed to understand Dr Balzan's "unfounded" comments.

"As all involved stakeholders are aware, the Office is presently conducting an extensive investigation of the agreements," the NAO said, with reference to deals to privatise state hospitals.