I have no particular insight, but since Svalbard isn't part of the Norwegian health system and kind of in a weird place, jurisdiction wise, I'm guessing it's in effect as if the kid was born abroad. The main problem is that the medical facilities on the island are tiny and primarily geared towards dealing with accidents and emergencies. Any medical procedure that can be either predicted or easily scheduled tends to get done on the mainland, and if you have too many medical problems you get kicked off the island.