Saint James Hospital CEO calls for introduction of tax subsidies for people who buy health insurance

CEO of the Saint James Hospital Group Jean Claude Muscat is calling for the introduction of tax subsidies for individuals who purchase private health insurance as one of his top three Budget proposals.

This, he said, would be along the same lines as the support the Government already provides to parents who send their children to private schools.  “It would encourage more people to take up private cover, which in turn would reduce pressure on state hospitals and lead to increased investment in medical infrastructure by private healthcare operators,” the CEO added.

Mr Muscat, as the CEO of Saint James Hospital Group, the largest private medical group in Malta running a number of hospitals and clinics around the islands, was asked by this newsroom to share his top three proposals for the upcoming Budget.

Including the aforementioned tax subsidies,  the CEO also called for the removal of VAT on the purchase of medical equipment, and for a dedicated business support arm to be set up.

“VAT on medical equipment is unnecessarily increasing the cost of equipment, and for healthcare providers this VAT is not recoverable,” he said. “Removing it would lower the cost base of providing care and free up funds for further investment in medical infrastructure.”

Regarding his call for a dedicated support arm to be set up, he said it would act as a bridge between private companies and the Government, “helping Maltese businesses deal with major policy changes established through the European Union, such as GDPR, ESG, the Pay Transparency Directive, cybersecurity requirements and the European Health Data Space (EHDS), among others.

“Each of these directives come with significant financial and competitive implications for organisations - and structured support would help businesses adapt without losing competitiveness.”