The face of public healthcare in Belize could be changing radically, and soon! 7NEWS is reliably informed that tomorrow Cabinet will consider a proposal to amalgamate Universal Health Services and the KHMH.
The details of the proposed amalgamation are difficult to ascertain, but the decision, as we understand it, is forced by the cash crisis that Universal and, by extension, government is facing. Universal continues to be very indebted to the Belize Bank, with a principal debt of $17 million and subsequent debts reportedly in the vicinity of another $10 million. It's a private debt, but it's publicly guaranteed, in this case by the DFC. Never mind that Universal also owes the DFC another $12 million.
For the Belize Bank, a DFC guarantee means a government guarantee, so now, under pressure from Michael Ashcroft's Belize Bank, government has to come up with a solution. As we understand it, the proposals is to swap Universal's $12 million debt to the DFC for equity. With that government would write off what Universal owes DFC and take over two-thirds ownership of Universal.
The idea is that government would then somehow make Universal into a going concern, one that would be able to service its debt to the Belize Bank. So how can government do what private management could not? Well the idea, as we understand it is, to let Universal specialize in critical care, and make the KHMH do general care.
Again, this is a very general outline that we have pieced together from a number of government insiders. We could not reach Minister of Health Joe Coye who is taking the proposal to Cabinet. But in its present form, the proposal is sure to generate great opposition from the KHMH staff and management, who for the past 5 years have been pitted in a battle against Universal.
It's a developing story that bears watching and we will continue to do so pending Cabinet deliberations tomorrow.
