As promised, the Barrow administration has posted the agreement that the previous Government of Belize signed last month with the new owners of the Universal Health Services on its website, www.governmentofbelize.gov.bz.
The agreement is dated January 22, 2008, four days after the Belize Healthcare Partners Limited (BHPL) reportedly finalized the deal for a full takeover of the private hospital.
According to the terms of the agreement, the Government, in the agreement, pledged up to $300,000 per month to UHS, for services to patients referred by the Government of Belize, through the Ministry of Health.
The agreement, in effect, gives GOB a monthly credit line for treating an estimated 21 dialysis patients at almost $10,000 a month – a total of $202,500, and up to $97,500 for lithotripsy treatment, a procedure that uses expensive but non-invasive technology to pulverize problematic gallstones.
Dialysis treatment at UHS ranges from about $480 to about $700, depending on whether it is done during normal working hours or during what is labeled emergency time.
On the other hand, lithotripsy services range internationally from about $7,000 to about $14,000. We understand that the average cost in Belize is at the lower end of that range—which would mean that the credit line could cover an estimated 14 patients monthly.
The agreement also notes that the Government has the right to request further services in addition to those mentioned in the agreement, on a case-by-case basis.
While no one can argue against the Government subsidizing healthcare for the needy, two main concerns have been raised about the agreement.
The first is whether the Government acted in line with finance regulations in entering into the arrangement.
We note that when we first carried the story of the $300,000 per month agreement last month, we had been informed that, according to Financial Secretary Joe Waight, the agreement was for 5 years. When questioned about the agreement, former Prime Minister Said Musa told Channel 7 News that the agreement was for an initial one year, for a commitment of $3.6 million, but that the intention was to take it to the National Assembly if it would extend beyond that.
The agreement, on which Musa’s signature appears, does not corroborate what he had said.
Clause 8 of the agreement, which gives the 5-year stipulation, is very carefully worded, indicating that, “The agreement shall be valid for a period of five (5) years from the date of signing as long as the purchaser …presents and receives approval for the said expenditures from the National Assembly as is required by the Finance and Audit Reform Act No. 12 of 2005.
A 5-year agreement translates to a total commitment of $18 million.
Musa had told 7 News that he was aware that he could not enter into an agreement for over $5 million without National Assembly approval, but as we had also indicated in our January article, there is also a requirement to put such a contract for services to tender, which was never done. This is the second major concern about the service contract between GOB and BHPL/UHS.
Prime Minister Dean Barrow had previously indicated to us his preference to invest public funds in public hospitals, such as the Karl Heusner Memorial Hospital.
We spoke today with Dr. Alvaro Rosado, Chief Executive Officer of the Karl Heusner Memorial Hospital (KHMH), to find out if there was ever an analysis done to determine whether it was worthwhile for the Government to invest in a dialysis unit at the KHMH.
Rosado told us that at the time when it was considered, it was noted that apart from setting up the physical infrastructure, the Government would have had to ensure that the required staff and support from the blood bank would be in place to ensure the proper functioning of the unit.
He told us that to his knowledge, the KHMH, a statutory authority of government, is getting a new board and that is something they could consider.