Joe Massa's parents demand NSW Government acquires Northern Beaches Hospital after Healthscope enters receivership

Sky News AU

27-05-2025

The parents of a toddler who died hours after entering the emergency department of a Healthscope hospital has called on the NSW government to purchase it after the company was forced into receivership on Monday.
Joe Massa, two, was taken to the public-private Northern Beaches Hospital in September after he began vomiting.
His parents, Elouise and Danny, said they waited in the emergency room for two hours as the toddler was deemed a lower priority patient.
He was then taken to Sydney Children's Hospital and suffered cardiac arrest and died due to brain damage.
The toddler's death sparked an inquiry that led the NSW government to implement 'Joe's Law', which will ban public-private hospital partnerships.
Joe's parents spoke out after Healthscope entered receivership on Monday and tore into the hospital operator's former owner, the Canadian asset management firm Brookfield.
'We are pleased that Brookfield is now finally out of the way,' Ms Massa said on Nine's Today.
'Brookfield has a lot of answers to provide us, including its company directors.'
Healthscope had accrued $1.6 billion of debt and had defaulted on lease payments.
Brookfield handed control of the health company to the lenders earlier this month, who appointed McGrathNicol Restructuring to find a buyer.
Mr Massa said the state government should purchase Northern Beaches Hospital and echoed his wife's criticism of private-public ownership of hospitals.
'Private equity shouldn't be involved in running critical health infrastructure in Australia," he said.
'Their modus operandi is to fatten up the bottom line and to sell the business for a profit.
'At the essence, there's a conflict between the values of public hospitals and private equity and that's where disastrous outcomes occur.
'The Northern Beaches Hospital needs to change and that will only occur when the Northern Beaches hospital returns to public hands as soon as possible.'
He called for an overhaul of the culture at the hospital and within the Northern Beaches community and stressed this would 'only occur when the hospital returns to public hands'.
NSW Health Minister Ryan Park on Tuesday morning said the state government is continuing its discussions and negotiations with the hospital to take over the facility.
"What we will continue to do is work with the current operators and those involved behind the scene. We will be continuing our discussions... with them about what we hope to do and that is bring the hospital back in public hands," Mr Park said on ABC Radio National.
"We're working through that. That's been an intense process that's been going on for a couple of weeks now."
Local state member Jacqui Scruby said Healthscope's receivership was an opportunity for the NSW government to purchase the hospital.
'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,' Ms Scruby said in a statement.
'Northern Beaches residents deserve a hospital with enough beds and services to meet the needs of our growing community, now and into the future.'
Federal Health Minister Mark Butler stressed that while the staff and patients were assured the hospitals will continue to operate, 'this will still be difficult for the hospital's employees and their patients'.
'As Healthscope have today stated, if you have a planned procedure in one of their hospitals, it will go ahead,' Mr Butler told reporters on Monday.
He also noted the government had met with KordaMentha, Healthscope's administrator, and the receiver and expects the hospitals to 'remain a critical part of our healthcare system'.
'The government does not want any of these important assets to be put in jeopardy to satisfy international investors,' Mr Butler said.
However, Labor will not bail out the embattled healthcare group.
'We remain steadfast in our view that an orderly sales process that maintains the integrity of the entire hospital group will provide the best outcome for patients, staff, landlords and lenders,' Mr Butler said.
Healthscope's CEO Tino La Spina told reporters he is confident there will be a buyer to take over the business.
'I think we're confident that there is interest in taking the Healthscope business as a whole. We have 10 non-binding indicative offers,' Mr La Spina said.
'Some are for the whole (business) and others potentially could include the whole (business) under certain circumstances. That is the focus.'
It has received a $100 million lifeline from Commonwealth Bank of Australia, which comes in addition to its current cash balance of $110 million and 'substantial additional asset backing across the group', according to Healthscope.
Westpac has also agreed to provide the receivers with capital to facilitate the sale.