News

Biman says hike in Aspen allocation linked to increase in services

August 17, 2025 7:35 am

Finance Minister and Deputy Prime Minister Professor Biman Prasad

Deputy Prime Minister and Finance Minister Professor Biman Prasad says the increase in people accessing services at Lautoka’s Aspen Hospital resulted in the $27million hike in budget allocation to the facility.

Responding to claims made by Fiji Labour Party Leader Mahendra Chaudhry for a full investigation into the Aspen Medical deal, Prof Prasad also said more complex services offered at the Lautoka Hospital warranted the increase in budget to the facility.

He explained that Government did not pay Aspen a fixed amount. Instead, payments were based on the number of patients and the type of treatment provided.

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The Deputy PM said the $27m increase reflected a rise in patient numbers and more complex services. Cardiac care is now offered, which incurs higher costs.

Prof Prasad said the original contract was signed in 2019 by the former government. In 2022, the deal was amended. Aspen was asked to begin operations in the existing hospital while plans for a new facility continued.

He said the original agreement was activated without a proper demand study. As a result, actual costs exceeded earlier estimates. He added that the government was now renegotiating the agreement to improve value for money.

On the medicine issue, Prof Prasad said the change was made by the Health Ministry and was part of a cost-control measure. However, he confirmed that government-run dispensaries would be set up at both hospitals. These were expected to open in the coming months.

Labour Party Leader Mr Chaudhry has called for a full investigation, claiming the increase was “unjustified and had disadvantaged ordinary Fijians”.

In response, Finance Minister and Deputy PM Prof Prasad said Chaudhry’s claims were incorrect.

He stated that Aspen Medical Fiji was a local company, owned by the Fiji National Provident Fund and Aspen Medical Australia.

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