Yet the documents filed by Steward Health Care in court shows the US company is in a position to strong-arm the government to meet its demands, despite arguing the deal is fraudulent and corrupt. What the government and Steward Health Care are not explaining are the reasons for renegotiating the VGH concession agreements or whether it is even legal to do so. This latest increase also means that between the date that the US medical giant parachuted in to rescue the failed concession (in late 2017) and next year (2022), Steward Health Care has doubled a large chunk of its annual income from the 30-year concession. The health minister has confirmed there has been no conclusion on the new pact, and yet millions continue to be transferred to Steward Health Care’s coffers despite the company’s evident failure to deliver on its promises.Īccording to the Health Services Delivery Agreement, whatever is budgeted by the government gets paid to Steward.

The additional budget allocation was made although the government has said it is renegotiating the concession agreement. This has been done in a context where the deal signed by the government has been remarkable for the lack of results from the concessionaires, whether VGH or Steward Health Care, in both of which CEO Armin Ernst was involved. Yet Fearne conveniently glossed over the fact that, under the highly secretive VGH agreements, whatever the government budgets for the running of these hospitals, the funds go straight into Steward Health Care’s coffers – regardless of whether they actually spend it on the hospitals. The additional allocation of €20 million in the budget to bring the budgetary allocation to the three hospitals up to €70 million a year was deceptively described by Fearne as “more investment in the health sector”. The Shift has analysed hundreds of pages of documents related to the deal to understand what the government has been attempting to hide and to give readers perspective on news reports following the budget announcement of an additional €20 million towards healthcare. Steward Health Care has additionally summoned to testify in court, Prime Minister Robert Abela, Health Minister Chris Fearne, former prime minister Joseph Muscat and his chief of staff Keith Schembri, as well as the minister at the time signing off on the deal – Konrad Mizzi. Steward Health Care’s claims and the revelation of this cache of compromising documents give it powerful leverage over the government, at a critical time in the discussions over the future of the hospitals deal. They occur at a time when the government is seeking to build popular support for the renegotiation of the much-maligned deal originally granted to VGH – described by the National Audit Office as vitiated and illegal. This is just one of a wave of court cases relating to VGH and the Labour government’s decision to sell off public hospitals, all of which threaten to be highly embarrassing for the government. The proceedings relate to an appeal Steward Health Care has filed against a judgement involving one of the original VGH investors. Steward Health Care, the company that took over the running of three public hospitals in Malta from the controversy-laden Vitals Global Healthcare (VGH), has claimed in court that the deal it acquired was mired in fraud and corruption, according to documents filed in court that the government has so far kept secret. * Steward to get additional €20 million per year to run Gozo General and Karin Grech hospitals * Steward facing at least five skeleton-laden court cases * Steward claims in court Vitals concession itself was the result of fraud and corruption * In September 2021, Steward filed unredacted copies of all VGH agreements, side letters and potentially embarrassing documents * In February 2022, Robert Abela, Chris Fearne, Joseph Muscat, Konrad Mizzi and Keith Schembri to face cross-examination about Steward’s claims of fraud and corruption in the entire deal

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