Fiji government clarifies Aspen Medical contract funding and plans for medicine dispensing
Deputy Prime Minister and Finance Minister Professor Biman Prasad has outlined how the Aspen Medical Fiji arrangement works, clarifying that Health Care Fiji Pte Ltd (HCF) is not paid a fixed contract sum. Payments to Aspen are based on the number of patients treated at Lautoka and Ba Hospitals, with remuneration also reflecting the complexity of each case. In the most recent period, the two hospitals handled roughly 950,000 patient episodes, including high-cost cardiac services, underscoring the growing demand on public health facilities.
Key ownership details remain that Health Care Fiji Pte Ltd is 80% owned by the Fiji National Provident Fund and 20% by Aspen Medical Australia. The government has stressed that patients continue to access services free of charge in public hospitals, and that funding is tied to activity rather than a flat annual payment. The contract was activated in 2022 by the previous government, which had budgeted about $60 million for the arrangement, but the actual cost has approached $120 million, illustrating the scale of the services provided and the implications for the national health budget.
On the medicines front, dispensing arrangements under the PPP remain a government responsibility. Work is underway to establish government-run dispensaries at Lautoka and Ba to improve access to medicines for patients. Ongoing negotiations with Aspen are focused on ensuring the contract delivers more efficient and cost-effective health services for Fijians, while maintaining high standards of care.
Additional context from related reporting underscores ongoing reform discussions and the aim of strengthening governance and transparency in health service delivery. The government has indicated a broader review of the PPP with the objective of ensuring sustainable funding and better health outcomes for all citizens, with a potential shift toward public dispensing for outpatient medicines as part of broader health-system reforms.
Summary: The government reiterates that Aspen Medical Fiji is paid per patient treated, with complexity factored in, rather than under a fixed annual sum. The arrangement remains 80% FNPF and 20% Aspen, serving Ba and Lautoka hospitals where patient volumes are high and services continue to expand. The administration is pursuing reforms to improve efficiency, governance, and access, including plans to establish public medicine dispensaries at the hospitals. The overarching goal is to deliver reliable, affordable, and high-quality health services for Fiji’s population through a transparent and sustainable health system.
Logical comments:
– The per-patient, complexity-adjusted payment model is designed to align funding with actual service use, which can help reflect rising demand and evolving care needs, such as cardiac services.
– Ongoing negotiations signal a willingness to refine the PPP to balance access, quality, and cost, which is crucial given the significant portion of the national health budget consumed by Ba and Lautoka hospitals.
– Moving toward government-run outpatient dispensaries could improve medicine access and cheaper supply chains, though it will require careful transition planning to avoid service disruption.
Hi-level takeaway:
– The article reinforces the government’s approach of tying PPP funding to patient activity and case complexity, while signaling reform toward greater public involvement in medicine dispensing and governance to ensure sustainability and better health outcomes.
Summary in brief: The Fiji government is clarifying that Aspen Medical is paid per patient with a complexity factor, not via a fixed sum, across Ba and Lautoka hospitals. With about 950,000 patient episodes annually and a contract cost near $120 million, the administration is pursuing reforms to improve efficiency, governance, and access, including plans to run public dispensaries for outpatient medicines. The overarching direction is toward a more transparent and sustainable health system.
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