16 - 22 December 1999

Public-private sector partnerships in homes for the elderly

by Franco Aloisio

The government's decision not to build any more homes for the elderly represents a shift in government policy. Last week Antoine Mifsud Bonnici, the parliamentary secretary responsible for the elderly, told The Malta Business Weekly that the government had no intention of building any more homes for the elderly on its own initiative.

He said the home for the elderly in Cospicua, which will be inaugurated on Saturday, will be the last home to be built using public funds. The Cospicua home, which will house around 70 elderly persons, has cost the government Lm2.5m.

"The way forward is to develop partnerships with the private sector through which future homes for the elderly will be constructed and managed together with private companies," Dr Mifsud Bonnici said.

A home for the elderly which is to be built in Mellieha will be constructed and managed by a private company, following a call for tenders.

A development brief similar to that issued for the White Rocks complex will be published and companies interested in the building and running of elderly homes will submit their plans.

"At present, the government has built the home but the running is in the hands of the private sector. The Zejtun home and the one which will open in Cospicua were built by the government but are run by a private company. The next step is to involve the private sector in the construction of the future homes," he said.

"Moreover we are considering sub-contracting private companies by utilising their vacant rooms for elderly people who are on the waiting list, rather than constructing new homes for them."

There are around 500 elderly persons waiting to be placed in one of the various homes in Malta. At present, the government owns seven homes for the elderly and nine day centres. The capital and recurrent cost of these homes is considerable and the involvement of the private sector in this aspect of welfare will ease the burden on the country's finances.

This view was reiterated by Alex Tranter, managing director of Healthcare Services Ltd, a company which specialises in the running of homes for the elderly. The company runs the State-owned Zejtun and Cospicua homes together with its own private homes in Mosta and Rabat.

"Establishing joint partnerships with the government in this sector makes sense. If these homes are to be run in a sustainable manner, both the public and private sector must be involved," said Mr Tranter.