16 - 22 December 1999

BUPA seeking strategic partnerships with private hospitals

by Franco Aloisio

BUPA Malta has announced that it will be seeking strategic partnerships with key players in the Maltese private health care sector in the coming weeks. Top officials of BUPA International came over to Malta to launch a business initiative with local hospitals. Bill Ward, general manager BUPA International and Andrew Vallance-Owen, the Group medical director of BUPA said that the organisation wants to establish ventures with the Maltese private healthcare sector in order to guarantee the sustainability of the sector.

BUPA will be presenting a proposal to the various private hospitals, and in return the hospitals will provide BUPA with information on their facilities, standards and practices. For this purpose, BUPA will be distributing a detailed questionnaire to the private hospitals. Replies to these proposals and questionnaires are expected to be gathered by January.

Mr Ward said the costs of private health care in Malta have been "escalating" over the past few years with the result that subscription prices have also gone up. He added that the rise in the cost of private healthcare in Malta is one of BUPA's main concerns. "BUPA must ensure that the quality of care is both appropriate and affordable," he said.

"If the costs continue increasing, insurance premiums will go up and the sector will eventually become unsustainable," Mr Ward said.

"As a healthcare company, we have to make sure that the hospitals are offering value for money. BUPA has to ensure that the quality of care is of a high standard and can be within the financial reach of the people," said Dr Vallance-Owen.

On the measures announced in the Budget for the year 2000 which affect health insurance companies, Mr Ward said that BUPA welcomed these measures.

The removal of the stamp duty on private medical insurance policies and the proposed tax incentives will strengthen the healthcare sector and promote consumer choice. "However the collaboration between the private and public healthcare systems must be strengthened as such a synergy is essential for the future of healthcare in Malta," said Dr Vallance-Owen.

BUPA was established in Malta 28 years ago. At present, BUPA, which is a non-profit organisation, boasts 60,000 clients in Malta and four million in 180 countries all around the world. The top officials of BUPA said that over the last 28 years healthcare in Malta has improved dramatically.

The vast majority of BUPA subscription income, 80 per cent, is spent on meeting medical expenses. The remainder meets the operating costs of the organisation and the surplus is reinvested in healthcare.