Minister of Health Jose Coye along with CEO in the Ministry of Health this morning met with KHMH board members and representatives of the medical staff to bring the institution up to speed with the Universal Health Services transaction. At the end of the meeting the press was invited to a press conference where the transaction moved a microscopic level from being opaque to translucent. And while there is no new information, all that we've been reporting over the past few days have been verified with the exception that there will be an amalgamation.
Israel "Pie" Marin, KHMH Authority Chairman
"We are looking at the entire process that has been presented this morning very positively because we think that it is going to be opportunities for the hospital, its employees, and we'll be able to offer better services to the public.
So if you are saying how much have we acquired, none. How much do we intend to acquire, the number is still not set in place. It is a business transaction in which there is going to be a debt exchange for equity and there has to be some sort of scientific way of determining what portion of the debt and equity is going to be left at the end of the day. But there is no set number and we have not acquired debt, we have not exchanged debt. It is all in a proposal folks."
Hon. Jose Coye, Minister of Health
"What the government is looking at it is how do we first settle the debt with the Belize Bank and that is in process. Once that has been done, then the government can look for a swap as a debt for equity into that entity. That entity then will be able to take on the responsibility to deal with the DFC debt and also to assume the debt that the government would have paid off to the Belize Bank.
The two thirds is a position that has been proposed so far, it certainly will not be less, if anything it can be more, but that is given in exchange for debt. If the government says we don't want any interest in Universal, we prefer indeed that the matter be brought to a close and go according to the mortgage agreement and just sell out, certainly if that is the way it is to go, the government is still obligated to clear the debt with Universal because of the commitment he gave the guarantee. So obviously the first thing the government will have to do is to settle that debt.
The key to the success of moving this thing forward and to in fact make the whole concept a viable one, how to make the Universal a viable institution, how to indeed to enhance the services here at KHMH, enhance services there, will to a greater extent be in management. It is how well you'll be able to manage the institution."
Alfonso Noble Reporting,
Is Universal worth $44 million?
Hon. Jose Coye,
"No."
Alfonso Noble,
How much is it worth sir?
Hon. Jose Coye,
"I am not sure but I don't see it having a value of $44 million but I don't what it is worth."
Alfonso Noble,
But me as a taxpayer will be paying $44 million for Universal sir?
Hon. Jose Coye,
"If that is the indebtedness, I wouldn't say that we would be paying $44 million for Universal. If the government were to settle the debt with Belize Bank, the debt will be assumed then by the entity Universal. Universal would settle its debt with the DFC then obviously it will have a debt on Universal's books. The intention and the hope is that that institution can become viable to provide health services and at the same time be able to honor its commitment."
Alfonso Noble,
You have any idea how much Universal is worth?
Hon. Jose Coye,
"Not at this point in time, except that I understand that some have quoted figures from ten to fifteen million but those are things that we would have to determine. What I am saying here..."
Alfonso Noble,
Doing simple math here Minister what I am saying is that you're going to be paying $44 million for $15 million. I was never an A student in math but that gives me $29 million that we can't show anything for.
Hon. Jose Coye,
"Right and I am saying is this, is that if you pay $44 million today for an asset that might be worth far less, let's say it has $15 million, whatever it is, if we are doing simple math you are quite right. The difference in this is that the simple math stops at the point where it is not that $15 million will be there always, it is whether $15 million can generate a bottom line, whether it can generate enough profit over the years to come, whether you can restructure it, whether you can make it viable."
A task force is being put together to look at the proposal of the acquisition of Universal Health Services. They are to present their findings by mid January of next year. Meanwhile the Nurses Association of Belize today issued a release stating that as key stakeholders in the healthcare system their input should be considered. They are scheduling a press conference for Friday during which they will expound on their position.
