The parent company of Healthscope, the private operator of Northern Beaches Hospital and one of Australia’s largest private hospital companies, has gone into receivership.
It is understood that the company’s lenders voted to end their support for current owner Brookfield, which has allegedly been unable to meet the financial obligations required to keep facilities operational.
Healthscope confirmed with Manly Observer this afternoon that its parent entities have entered receivership, with its lenders appointing McGrathNicol Restructuring to “work with Healthscope management to complete an orderlysale of the business.”
“The operational business, which runs the hospitals, is not in receivership,” they said. “The Group’s 37 hospitals all remain open and operating on a business-as-usual basis with no impact on staff, doctors or patient care.
Healthscope’s management team, led by CEO Tino La Spina, will continue to lead the business and operations.
Mr La Spina commented:
“All 37 of our hospitals continue to operate as normal and today’s appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients.”
Upon hearing the news, one of the key campaigners for hospital reform, Balgowlah’s Elouise Massa issued the following statement to Manly Observer.
“Healthscope’s move into receivership marks the end of a disastrous attempt by Canadian private equity firm Brookfield to profit from the care of sick and injured Australians.”
“We have witnessed first-hand the tragedy that unfolded when Healthscope and Brookfield prioritised profit over patient care — resulting in the avoidable death of our beloved Joe after we took him to Northern Beaches Hospital, where he should have recovered, but did not.
“This moment presents the NSW Government with a renewed opportunity to put Northern Beaches Hospital into public hands. We continue to place our trust in the Government to act in the best interests of the community and deliver this outcome as swiftly as possible.”
Pittwater MP Jacqui Scruby also issued an immediate statement calling for the state government to buy the entire hospital site rather than look at just reclaiming the privately-operated public arm of the medical service.
“The news that Northern Beaches Hospital operator Healthscope is entering into partial receivership confirms long standing concerns about the failure of the public private hospital from both a healthcare and financial perspective,” Ms Scruby began.
“It is now crunch time. With hedge fund backers pushing for Healthscope’s’ assets to be sold, the NSW Government must seize this opportunity to buy not just the public beds, but the entire Northern Beaches Hospital. Northern Beaches residents deserve a hospital with enough beds and services to meet the needs of our growing community, now and into the future.
“I have been briefed by the Treasurer and Health Minister this morning and have been assured that contingency plans are in place and that it will continue to ensure healthcare services are provided without interruption at the Northern Beaches Hospital, including its 24/7emergency department, surgeries and maternity. I’ve also called for a hotline to be established.
“The government has also said that continuity of care and patient safety remain a priority, along with protection of the rights and entitlements of staff and that they have a NSW Health executive team to step in if required.
“Buying the hospital isn’t enough. There must also be increased operational investment to address the systemic dysfunction, chronic staff shortages and underfunding identified by doctors, nurses and the recent independent NSW Auditor General’s report.
“The audit and health worker whistleblowers have confirmed what our community has long known: The Northern Beaches Hospital privatisation has failed to deliver safe, integrated care and has systemic dysfunction.”
Wakehurst MP Michael Regan added:
“Less than a fortnight ago, the NSW Health Minister The Hon. Ryan Park assured a packed room of locals at Dee Why RSL that he and the Treasurer, The Hon. Daniel Mookhey MLC,would ‘do whatever we can to make sure that this facility comes back into public hands.”
“I thank them sincerely for their commitment. I also call on them to follow through with urgency and decisiveness to bring the whole hospital back into public hands as soon as possible, and ensure NBH workers entitlements are protected, to end this exhausting uncertainty hanging over our community.”
You can read about that event here.
McGrathNicol said in a statement today that it intends to transition all hospitals to new ownership, with no plans for hospital closures or redundancies. They will undertake an immediate review of the sale process to date, with a view to re-engaging with interested parties in the coming weeks.
McGrathNicol partner and appointed receiver, Keith Crawford said:
“We want to make it clear that the subsidiaries that own and operate Healthscope’s network of hospitals are not affected by our appointment to the shareholding companies.
“We will also work closely with Healthscope management to support any operational funding requirements via access to $100 million of new funding from Commonwealth Bank while we pursue an orderly transition of ownership of Healthscope’s hospitals.”
A statement from the NSW Government to follow.
