Stop-loss built in to protect Fund
3 February, 2023, 4:45 pm
The Fiji National Provident Fund (FNPF) has a stop loss arrangement with both Government and Aspen Medical in its public-private partnership agreement, says FNPF CEO Viliame Vodoinavalu.
The Fund has invested about $20.8 million in the deal, which was forged through a deal inked in 2019 between FNPF and Aspen Medical of Australia.
This resulted in the creation of a subsidiary company, Health Care Fiji Ltd that now oversees the running of the Ba and Lautoka hospitals.
He made the clarification during the annual member forum organised in Koronivia on Tuesday.
Mr Vodoinavalu said the deal was a public partnership arrangement. “So it’s the first time it’s been trialed in Fiji,” he said.
“We’ve got a stop loss in the arrangement. “So in any event, there’s default by the operator, Aspen or Government, there’s a tripartite relationship. It’s between Government, FNPF and the operator Aspen.
“So at any particular point in time, there’s a default in either the operator or Government, FNPF recovers the full amount,” Mr Vodonaivalu explained.
He said the deal was particularly important as the benefits were twofold.
“One is a return on investment. The other bit, which is a more important part, is the healthcare. And I think, you know, health care in Fiji is not at par with any developed country.
“I think the intent is to lift it to another level. And that’s the reason why we were entrusted with that investment because longevity of life requirement is there,” Mr Vodonaivalu said.
“And for us, we see it as an enabler to other investment options. Because if healthcare is established, then our intention to go down to healthcare services, medical tourism investment will be an option for us.”