Northern Beaches Hospital will officially be under public ownership with the NSW Government signing the contract with Healthscope and its receivers to hand back the hospital.
It is anticipated the Northern Beaches Hospital will be under the management of Northern Sydney Local Health District and part of NSW Health on 29 April 2026.
Under the agreement, the entire 494-bed hospital will return to public ownership. All clinical and support staff currently working at Northern Beaches Hospital will be offered jobs by NSW Health at the facility, and staff entitlements to annual, long service and sick leave will transfer across from Healthscope to NSW Health.
The signing of the final binding agreement means that employment offers will commence this month, A NSW Health statement said.
Northern Beaches Hospital was established in 2018 under a public-private partnership with Healthscope contracted to deliver public and private health services for 20 years. The original plan was to hand back public services to the NSW Government at the conclusion of the contract in 2038, while Healthscope continued to provide private hospital services.
It is anticipated the Northern Beaches Hospital will be under the management of Northern Sydney Local Health District and part of NSW Health on 29 April 2026.
However, despite a number of positive performance reviews, community concerns grew about staffing shortages, long emergency wait times and the complex dual model of care.
The issue came to prominence following the death of Balgowlah toddler Joe Massa after care at the Frenchs Forest facility. Healthscope’s management of the hospital has also faced two parliamentary inquiries and an audit that determined it was not a health model that should be repeated.
The hospital’s parent company, Brookfield Corporation, entered receivership in June 2025, with McGrathNicol Restructuring appointed to manage the transition.
“On behalf of NSW, I am looking forward to welcoming the professional, hard-working, and caring staff from Northern Beaches Hospital into our family,” NSW Health Secretary Susan Pearce said.
“I know this has been a challenging period for staff at Northern Beaches Hospital and the transition period will also not be without its challenges, but throughout it all they have continued to put their patients and community first.”
“I am confident we will navigate this transition smoothly with our commitment to putting our patients and community at the centre of all that we do,” NSLHD Chief Executive Anthony Schembri said.
“We anticipate letters of offer will be sent to most NBH staff before Christmas. Our valued medical staff, including junior medical officers, staff specialists and visiting medical officers, will receive their offers early next year to align with clinical training terms and allow for a safe, expedited credentialling process for staff specialists and visiting medical officers.”
“I want to thank the Northern Beaches Hospital team for their unwavering commitment to patient care throughout this challenging period,” Healthscope Chief Executive Officer Tino La Spina said.
“This agreement provides certainty for staff and the community, and we are confident that patients will continue to receive high-quality care from the same skilled, compassionate teams who have served them to date.
“We will work closely with NSW Health and NSLHD to ensure a smooth transition for our people, ensure ongoing outstanding patient care, support the workforce and preserve the strong connection the hospital has with its community.”
“The Receivers would like to sincerely thank the management and staff of Northern Beaches Hospital for their ongoing commitment to patient care during a period of uncertainty,” McGrathNicol Partner Jason Ireland said.
Wakehurst MP Michael Regan touched on concerns about private services still being available at the facility once the transition occurs.
“With change comes uncertainty. I have already sought and been given a commitment that the Northern Beaches Hospital will remain a level 5 facility and that there will be no reduction in bed numbers. I am seeking further commitments about retention of lifesaving interventional services at the hospital, particularly catheterisation lab cardiac services.
“I am urging the NSW government to take every step possible to maintain private services at the hospital.”
“I am urging the NSW government to take every step possible to maintain private services at the hospital. I want to see the best aspects of the current Northern Beaches Hospital maintained, including private services, while the parts that have been squeezed under the privatised model are finally properly resourced.
“Having Northern Beaches Hospital integrated into the broader public health network will have many benefits – a seamless electronic medical record system; being part of New South Wales Government programs and policies, such as Birthrate Plus in maternity and safe staffing ratios for nurses; and being better connected to NSW Health outpatient services in the community.
“This is the beginning of a positive new era for healthcare on the Northern Beaches.”
