The government sent a termination letter to Steward Health Care on Tuesday following the recent scandal and court ruling.
The government also revealed that it is stepping in immediately to run the three state hospitals Karin Grech Hospital, St Luke’s Hospital and Gozo General Hospital.
This move gives notice to Steward that it is rejecting the termination conditions which Steward put forth last week upon its announcement that it will be quitting operations on the island.
The government revealed, through Health Minister Chris Fearne in parliament, that it will be carrying out a controlled step in, meaning that it will start running the hospitals with immediate effect.
The government will do so on the healthcare giant’s behalf for the upcoming two weeks. The facilities aforementioned will only formally return to the government once the transition period ends.
Sources within the government informed Times of Malta that this move gives the government a stronger legal footing should it decide to sue the company for damages. The government wishes to avoid a €100 million payment Steward wants to push for having its deal to run the hospitals cancelled earlier than agreed upon.
On his part, Deputy Prime Minister Chris Fearne told parliament that he would safeguard all jobs and contracts to people working at any of these hospitals.
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