The government has released the agreement it drew up with Dr. Devi Shetty to build a US$2 billion hospital in Cayman.
The agreement was not released at the time the deal was signed at a press conference held by Indian heart surgeon Mr. Shetty and government officials in April.
“As the agreement generated a great deal public interest, Cabinet has decided to release it at this time in the spirit of transparency,” Minister of Health Mark Scotland said.
The agreement, between Narayana Hrudayalaya Private Ltd. and the government outlines a number of laws that the government has agreed to amend or introduce to facilitate the hospital.
The Narayana Cayman University Medical Centre will be built in phases over 10 years and which will include a medical university and assisted living homes for seniors who can afford to live in Cayman.
The contract states that the government will help the company with its rezoning application to secure 500 acres of land “in the eastern part of Grand Cayman”.
David Legge, spokesman for the project, said Monday that a location had not yet been confirmed.
The first phase involves setting up a 200-bed hospital costing approximately $150 million, not including the price of the land. This will provide tertiary care currently unavailable in Cayman, including open heart surgery, cancer treatment, bone marrow transplants, nuclear medicine and organ transplant.
“Several other countries have approached Mr. Shetty and offered him a variety of different incentive packages to encourage him to build this project in their country – varying from a 50-year tax-free zone to actually constructing some buildings for him. As is common practice in many jurisdictions, the Cayman Islands Government has offered some incentives to the developer to tip the balance in our favour,” Mr. Scotland said.
“We believe very strongly that the potential benefits to Cayman of this project are so significant, and will benefit such a broad spectrum of our population, that it was important to do what we could to secure the project here. While the value of the concessions and the support we offer are considerable, I believe that the advantages of the proposed project are equally significant,” he added.
Under the deal, Caymanians referred from the Health Services Authority will get a 20 per cent discount on surgeries at the hospital.
The government has also undertaken to upgrade the airport and to work with Cayman Airways to secure preferential air fares for patients and relatives, as well as hospital staff and to provide charter services for them.
Water will be provided at a preferential rate for a set period of time, which was not specified in the contract.
The agreement stipulates that preference will be given to hire to local contractors and Caymanian employees.
It also states that the government will ensure work permits and key employee status of staff will be processed in a timely manner.
Work permit fees for medical personnel employed at the new hospital would cost between 15 per cent and 30 per cent less than normal.
Patients and their relatives will be granted a minimum of three months visitors’ visa upon arrival in Cayman.
The agreement also gives the company a 20-year waiver of all taxes on profit, income, gains and appreciations, regardless of whether the law changes to introduce taxes on those.
The company will be exempted from paying customs or import duty on the first US$800 million it spends on equipment and medical supplies. Once that US$800 million has been exhausted, for the 15 years following that, its duty payments on equipment and supplies will not exceed 5 per cent of the cost. In the 15 years following that period, its duty payment will not exceed 10 per cent of the cost of equipment and supplies.
For the first 50 years of operation, it will not pay duty on any life-saving equipment.
The government, in the agreement, has undertaken to pass or amend laws to recognise qualifications of Indian medical professionals and to enable them to practise in Cayman. Minister Scotland said at last month’s press conference that other nationalities would also be included in this stipulation.
The deal also commits the government to amend or create laws that would limit malpractice and medical negligence awards to a maximum of US$500,000 per person.
It also allows the importation of human organs, tissues and body parts, including non-foetal stem cells, obtained by lawful means for use at the hospital.
“Medical tourism is a growing industry, and we already have all the attributes necessary for success – an established tourism product, our geographical location for easy access by American visitors, political stability, and a reputation as a safe destination in the Caribbean. Not to act on it would be a missed opportunity,” Mr. Scotland said.
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If only the government would give as much care and attention and incentives to the financial services industry.
An excellent opportunity for Cayman.. Government should now do another look at the earlier plan to build a new airport east of Breakers instead of adding to the congestion at the current site. I expect there would have been a great debate in regards to limits to malpractice if we were given the opportunity to; 500,000. is a pittance..
I see where a healing garden is being cultivated in the George Town Hospital. I hope Dr. Shetty’s design is going to incorporate a labyrinth & meditative healing garden as well. I have built my own labyrinth in Cayman Brac & have been promoting its healing properties here. I would imagine with Dr. Shetty’s cultural background, he would be familiar w/such designs & appreciate their spiritual connection to healing & strengthening of the physical as well as the spiritual and mental health of patients & their loved ones. Throughout the world, labyrinths have been incorporated in building designs for all types of medical buildings; case in point, many may be familiar w/the Moffitt Cancer Center in Tampa, FL.