Big banks hand private hospital giant a $100m lifeline
Commonwealth Bank announced on Monday it would provide $100 million to support Healthscope, which operates 37 hospitals in every Australian state and territory.
Westpac has agreed to continue to provide assistance to help receivers sell the business, offering some clarity to the provider's 18,000 employees.
Receivers have been appointed, led by McGrathNicol partner Keith Crawford, who said the focus was to engage "constructively with all key stakeholders to ensure uninterrupted operation of Healthscope hospitals".
He said the intention was to transition all hospitals to new ownership, with no plans for closures or redundancies.
Healthscope said while the parent entity had entered receivership, the operational business, which runs the hospitals, has not.
Every hospital would operate as normal, chief executive Tino La Spina said.
He revealed the additional funding would ensure a stable path to sale.
"There is no interruption to the outstanding care we provide ... the additional funding, while we do not anticipate it being required, provides additional support," Mr Spina said.
"The receivers and management share the same goal of maintaining our market-leading standards of patient care and protecting the business, the hospitals and our amazing people."
The Australian Nursing and Midwifery Federation earlier said it had been working with members and stakeholders navigating the financial difficulties and uncertainty.
"For the nurses and midwives who care for patients in Healthscope every day, this is a very difficult and worrying time," union official Phoebe Mansell said.
"The financial collapse of Healthscope is a stark and shocking reminder of the dangers of privatising essential healthcare services."
The operator owns the Northern Beaches Hospital in Sydney, Hobart Private Hospital, Darwin Private Hospital and Knox Private Hospital in Melbourne.
In May 2024, then chief executive Greg Horan said even though the sector was "facing considerable headwinds", providing the "best care" remained a top priority.
The company came under scrutiny following the death of two-year-old Joe Massa at the Northern Beaches Hospital in September 2024.
The toddler died after being wrongly triaged and waiting two hours for a hospital bed. He was later transferred to Sydney Children's Hospital in Randwick following a cardiac arrest but succumbed to brain damage.
Healthscope moved to shutdown maternity services at Darwin Private Hospital and Hobart Private Hospital earlier in 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Canberra Times
6 minutes ago
- Canberra Times
Record fine leaves Qantas with unwanted brand baggage
"It's an Australian company. You go overseas and see that red kangaroo, you know 'that's my country and I'm going home, I feel safe' ... that's been lost," he told AAP.
Perth Now
6 minutes ago
- Perth Now
Record fine leaves Qantas with unwanted brand baggage
Qantas stands accused of betraying Australian values and undermining its reputation by illegally sacking baggage handlers. Experts warn the airline, which markets itself as the "Spirit of Australia", risks losing its place in the national psyche as a result of its recent indiscretions. Qantas was on Monday fined a record $90 million for outsourcing 1820 ground staff roles, a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations. It added to a $100 million fine it received for selling tickets to flights that were already cancelled between 2021 and 2023, against the backdrop of executives pocketing seven-figure bonuses. Trading on being the "Spirit of Australia" could mean the flag carrier might be held to "exceptional, indeed unique" standards, Justice Michael Lee noted as he delivered the fine. RMIT associate professor of finance Angel Zhong agreed, saying the positioning invited scrutiny of the airline's ethics, not only its performance. "Illegally sacking workers is seen as a betrayal of the very values Qantas claims to represent: fairness, mateship and respect," she told AAP. "If Qantas is the 'Spirit of Australia', then the public expects it to act with a conscience, not just a balance sheet." Illegally sacked Qantas employee Don Dixon said the company meant everything to Australians, but needed to behave with that in mind. "It's an Australian company. You go overseas and see that red kangaroo, you know 'that's my country and I'm going home, I feel safe' ... that's been lost," he told AAP. The embattled airline unsuccessfully appealed against the decision to the High Court, paving the way for the penalty to be awarded. Justice Lee ordered Qantas to pay $90 million in penalties, with $50 million to be paid to the union that brought the proceedings and highlighted the illegal conduct. He cited the "sheer scale of the contraventions, being the largest of their type" as a reason to impose a penalty that would deter other businesses from similar conduct. Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing. Public frustration and disappointment with Qantas might have increased, Assoc Prof Zhong said, but it wouldn't necessarily change consumer behaviour with price, route availability and loyalty programs outweighing ethical concerns. "That said, sustained reputational damage can have long-term effects," she said. "If trust continues to decline, Qantas risks losing not just customers, but its privileged position in the national psyche."
Perth Now
36 minutes ago
- Perth Now
Productivity symposium looks to find the 'secret sauce'
The next chapter of Australia's economic story is set to be written as the nation's top economic minds brainstorm answers to ailing productivity. After weeks of anticipation, the federal government's three-day economic roundtable will kick off on Tuesday in Canberra. Treasurer Jim Chalmers has already been bombarded with proposals ranging from winding back property investor tax breaks to environmental law reform and cutting red tape. But he has insisted all invited parties bring specific ideas and be willing to find common ground as the outcomes of the roundtable will help steer Australia's economic agenda. "Three days to inform three budgets - and beyond," Dr Chalmers will say in his opening remarks. "(The prime minister) has been clear that this is about writing the next chapter of economic reform and I want to acknowledge the leadership he's shown. "We are realistic about the impact of all this, but optimistic too. In this world of churn and change, we like Australia's chances." Even though the Australian economy has made significant progress on wages, inflation and employment, Dr Chalmers has acknowledged there is still more to do. The roundtable is aimed at lifting living standards primarily by boosting productivity, which has stagnated in Australia and other western countries. "Productivity is like a secret sauce," AMP chief economist Shane Oliver told AAP. "If you can get strong productivity, you can have strong profits, you can have strong wages growth and still keep inflation low." Improved productivity can help guard against future cost-of-living crises, which is particularly important during times of global uncertainty. The first day of the roundtable is expected to put a spotlight on ways to build resilience, with Reserve Bank governor Michele Bullock set to headline Tuesday's proceedings through her presentation on productivity trends. Productivity reform will feature more prominently on the second day before budget sustainability and tax reform help close out the roundtable on Thursday. Environment groups, the business sector, unions and others have all proposed major ideas, but Dr Oliver is keeping his expectations in check and says a firm commitment to regulation, investment incentives and competition reform could likely be called a success. Former Productivity Commission chair Michael Brennan has urged Australians to be realistic about reforms but said he was optimistic. "The strictures that the government has put around contributions - that they be specific, budget neutral and focused on the national interest rather than the vested interest - have all improved the quality of the debate," the e61 Institute chief executive told AAP. "I'm hopeful that there will be positive outcomes but it's already had a positive impact."
