Remember the Universal Health Services debacle? In May and June of this year, when thousands protested in Belmopan, four cabinet ministers were either fired or resigned over that single issue, and the Musa administration was plunged into crisis….it was the biggest news event of the past year – and while you probably remember, it seems government does not.
That’s because GOB is now asking social security to use your money to buy over Universal. It seems the deal with Belize Health Care Partners which has been a very slow work in progress is now in serious trouble but the debt to the Belize Bank stands, and the hospital is hemorrhaging cash. So now, government needs someone to step in and take it over.
And, in the narrow calculus of a government with few options for the debt-saddled facility – who better than the very liquid Social Security Board?
So the Board of Directors met this morning at 10:00 am in Belmopan to look at the proposal. But ten minutes before that meeting, WAVE radio put out the word that a Universal buyout was on the agenda. And that set off a frenzy of incredulous phone calls.
And while on the face of it, it is an incredible proposal, the fact is that it is a serious proposal put to the board by government in desperate need of a solution – and it’s the same government that appoints the board majority.
So what is Social Security going to do? Well, nothing, yet. 7news has confirmed that the board has commissioned a feasibility study and when that is finished, a decision will be made.
And from what our sources tell the decision on whether or not to takeover will be made on based on affordability; that is, can the facility be run sustainably at the purchase price?
And the answer to that question lies with the debt. It’s at least 33 million dollars and it’s almost universally agreed that with that debt, the hospital cannot be sustainably operated.
But in a buyout scenario, if Social Security doesn’t take over the debt, government must, and with taxpayers’ money.
For advocates of the sale, the argument is that Social Security already does a substantial volume of business with universal through NHI. But all that will be put into the feasibility study which could get back to the board before the end of the year.
So it’s a pending matter, but we’re not sure who’s pulling the strings. From what we could glean, it is not a Cabinet decision, and proof of that came when we spoke to no less than the Minister of Health this morning. Quite remarkably, while the Social Security Board of Directors was considering the biggest health issue, the relevant minister knew nothing of it.
Jules Vasquez, 7News
“We’ve heard reports that the Universal Health Care deal with Belize Health Care Partners has fallen apart and that the Prime Minister will be asking Social Security to take over Universal Health Services.”
Hon. Jose Coye, Minister of Health
“Bwai, that one I wouldn’t be able to speak on! I don’t know of it falling apart. As far as I am told, is that yes, they are making progress as the Prime Minister said in the interview. That’s what I know about it, that they are making progress.”
Later on we’ll have more from Coye as he discusses public health clinics which will be coming under private management.
