Latest news with #Healthscope
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
As suitors circle Healthscope, its management mulls a different path
The sales process for Healthscope's failed private hospital business kicks off in earnest this Monday with up to 30 potential suitors due to file their tentative offers for its 37 Australian hospitals, employing 19,000 staff nationally. But the non-binding offers won't include a bid from Healthscope's current management, who are contemplating a scheme to convert the company into a not-for-profit entity. It would mirror the resurrection of Australia's largest child care provider Goodstart Early learning, from the ashes of the collapsed ABC Learning empire, as a not-for-profit provider. Healthscope insiders have confirmed reports in the Australian Financial Review last week that its chief executive, Tino La Spina, is working on the plan as an alternative to a sale of the business to either commercial interests or other Australian not-for-profit operators like St Vincent's Health Australia. Healthscope declined to comment. People with knowledge of the proposal, who are not authorised to discuss the matter, confirmed that the plans are not advanced enough to put in a non-binding indicative offer by the Monday, July 21 deadline. But La Spina's team have been consulting with the receivers from McGrathNicol who are managing the sale, with a view to putting in a proposal during the second stage of the sales process where interested parties are expected to lodge binding offers for the business. This includes local not-for-profit operators, ASX-listed Ramsay Health Care, privately owned Healthe Care and a potential debt-for-equity swap that could see lenders like UK-based Polus Capital take control. The receivers are acting for lenders which are owed $1.7 billion, according to documents lodged with the corporate regulator, the Australian Securities and Investments Commission (ASIC). Australia's Big Four banks are among the lenders which will be hit with significant losses as the sales price is not expected to get anywhere near what is owed to them. The debt includes $52 million owed to the former owner, Canadian financial giant, Brookfield, which had $2 billion in equity wiped out when the group collapsed into administration earlier this year.
The Age
2 days ago
- Business
- The Age
As suitors circle Healthscope, its management mulls a different path
The sales process for Healthscope's failed private hospital business kicks off in earnest this Monday with up to 30 potential suitors due to file their tentative offers for its 37 Australian hospitals, employing 19,000 staff nationally. But the non-binding offers won't include a bid from Healthscope's current management, who are contemplating a scheme to convert the company into a not-for-profit entity. It would mirror the resurrection of Australia's largest child care provider Goodstart Early learning, from the ashes of the collapsed ABC Learning empire, as a not-for-profit provider. Healthscope insiders have confirmed reports in the Australian Financial Review last week that its chief executive, Tino La Spina, is working on the plan as an alternative to a sale of the business to either commercial interests or other Australian not-for-profit operators like St Vincent's Health Australia. Healthscope declined to comment. People with knowledge of the proposal, who are not authorised to discuss the matter, confirmed that the plans are not advanced enough to put in a non-binding indicative offer by the Monday, July 21 deadline. But La Spina's team have been consulting with the receivers from McGrathNicol who are managing the sale, with a view to putting in a proposal during the second stage of the sales process where interested parties are expected to lodge binding offers for the business. This includes local not-for-profit operators, ASX-listed Ramsay Health Care, privately owned Healthe Care and a potential debt-for-equity swap that could see lenders like UK-based Polus Capital take control. The receivers are acting for lenders which are owed $1.7 billion, according to documents lodged with the corporate regulator, the Australian Securities and Investments Commission (ASIC). Australia's Big Four banks are among the lenders which will be hit with significant losses as the sales price is not expected to get anywhere near what is owed to them. The debt includes $52 million owed to the former owner, Canadian financial giant, Brookfield, which had $2 billion in equity wiped out when the group collapsed into administration earlier this year.
The Guardian
12-07-2025
- Business
- The Guardian
Public-private pain: buying back Sydney's embattled Northern Beaches hospital faces uncertain prognosis
Just before the New South Wales parliament rose for the winter break, an unusual piece of legislation passed through both chambers late in the evening. It aimed to strengthen the arm of the Minns government in its negotiations to return the Northern Beaches hospital (NBH) to public ownership by threatening changes to the terms of the contract with its private partner, Healthscope. NBH is the only public-private partnership (PPP) in NSW where public hospital services, including emergency care, are delivered by the private sector. The Labor government, a staunch critic of PPPs, has vowed it would not enter any such deals in the future. To underscore its stance, it has now passed legislation banning PPPs to deliver acute care. After years of mounting debt and a string of complaints about care standards – including a toddler dying in a chair while waiting hours for care and a woman whose baby died in childbirth because an emergency caesarean was offered too late – the hospital went into receivership in May. Untangling its private components from its public ones and settling the terms of the government's buyback are proving painful. The PPP was put in place by the previous Coalition government in 2013, despite a similar failed experiment by the Greiner government at Port Macquarie hospital almost two decades before. The Minns government had resisted earlier calls to buy back NBH, but it has now been forced into action after Healthscope's collapse, with debt of $1.6bn. Local MPs and staff at the hospital had long been sounding the alarm about the impact of the financial incentive for profit on patient care. The independent Wakehurst MP, Michael Regan, has campaigned for a government buyback, proposing legislation that would return the hospital to public hands with no compensation at all. With the financial future of a hospital serving more than 370,000 residents on Sydney's northern beaches uncertain, the government has concluded a buyback is its only option. It is adamant, however, that it does not want to pay a 'windfall gain' and so supported the amended legislation. The Northern Beaches hospital continues to operate normally with a financial lifeline from the Commonwealth Bank, while a government-appointed taskforce negotiates with Healthscope's receivers, McGrathNicol. Progress, however, has been slow. The parties have not reached agreement over the price or exactly what it is that the government is going to buy. One of the problems is that the private and public components at NBH are closely integrated, unlike some other hospitals, where the private facilities are often housed in a separate building with its own services. NBH has separate wards, but many services – such as theatres, nursing staff, cleaning, , X-ray, pharmacy and pathology – are shared, with several operated by third-party private companies. The building itself had also been sold to a property trust, which leases it back to Healthscope, adding further layers of complexity. Sign up for Guardian Australia's breaking news email The cost of building the hospital was well north of $1bn, with the government contributing $600m at the time. A report in 2015 said the total cost to taxpayers – for the building and for Healthscope providing the public hospital beds over the life of the contract to 2038 – was $2.14bn. Healthscope also has rights to operate the private component until 2046. But is it a lucrative deal or not? It was revealed in a scathing independent report by the NSW auditor general, Bola Oyetunji, released in April that Healthscope was anxious to exit from running the public hospital part of NBH and had made two offers to the government to sell in 2023. The special legislation passed in late June arguably tips the scales in the government's favour by making it clear that receivership is a breach and starts the clock ticking on a resolution. 'If a mutual agreement is not reached, the amendments would give the health minister the power to issue a termination notice to Healthscope,' the treasurer, Daniel Mookhey, said in a statement. 'In addition, the treasurer would have the power to ensure that compensation negotiations occur in a reasonable time frame and to appoint an independent person to determine compensation if agreement cannot be reached.' Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion But the approach by the government has drawn criticism from business and the opposition (which ultimately supported the bill) on the grounds that it amounts to retrospective alteration of a contract and raises the question of sovereign risk for future investors in NSW. For the time being, the receivers and the taskforce appointed by the government are back at the table. A spokesperson for Mookhey said they are looking for a quick resolution. The government has a pot of money available for the buyback of the hospital. The 2025-26 budget revealed unallocated funds of $860m. It could all go smoothly or it could end in the courts. 'We are continuing to engage in constructive discussions with the NSW government on the future ownership of Northern Beaches hospital,' Healthscope said in a statement. 'Given the government's policy position against further public-private partnerships in the health sector, we believe this is in the best interest of the Northern Beaches hospital staff, patients and wider community.' There have been serious questions about NBH's ability to provide reliable healthcare since it opened in 2018. Staff reported shortages of basic supplies and an inefficient IT system where records were divided over several databases. Some teething problems were resolved early on, but staff continued to be concerned about the tensions between profit and patient care. The auditor general's April report confirmed critics' concerns, finding the PPP 'creates tension between commercial imperatives and clinical outcomes'. It found the hospital had failed to act on warnings about risks to patient safety and outcomes, and its electronic medical record systems 'present quality and safety risks', which Healthscope and the government's Northern Sydney Local Health District had known about since the hospital opened in 2018. In 2019, Healthscope was bought by a Canadian private equity firm Brookfield. High levels of debt intensified Healthscope's financial pressures and resulted in more concerns about how the PPP was operating. At the same time, the private hospital sector was at war with private insurers over a reduction in payout amounts for in-hospital care, which added to financial pressures. NBH – or at least its public hospital operations – will be returned to public ownership. The more likely outcome is that the government will buy the whole hospital, though this is not certain. It hopes the sale can be resolved quickly – and without blowing the budget. That will be welcomed by nurses who want to be employed on the same terms as their colleagues working in government-owned hospitals, including better patient ratios. For patients on the northern beaches, there will hopefully be an improvement in services, though Healthscope insists it already performs well compared with other similar hospitals. One of the big changes is likely to be the types of operations offered at NBH. At the moment, more complex cases are channelled to the Royal North Shore hospital under opaque policies put in place by the Northern Sydney Local Health District. With the same ownership, there will be less incentive for this practice to continue.
The Advertiser
08-07-2025
- Health
- The Advertiser
$20 million surgery centre opens in Charlestown in big private health move
A $20 million surgical centre has opened in Charlestown, boosting access for patients to numerous procedures. The Ramsay Health Care centre includes three operating theatres with capacity to expand to four, along with 12 inpatient beds and the latest medical equipment. It provides specialist services including endoscopy, oral and maxillofacial surgery, plastic and reconstructive surgery, ENT, gynaecology and Mohs skin cancer surgery. Ramsay - the country's largest private hospital operator - also owns Lake Macquarie and Warners Bay private hospitals. Its new centre was designed to "meet growing local demand for surgical procedures close to home and reduce pressure on larger hospitals in the region". The move comes amid volatility in the sector with the receivership of Healthscope, whose hospitals include Newcastle and Hunter Valley private. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. Claire Thurwood, CEO of Ramsay Surgical Centres, said the Charlestown site "demonstrates Ramsay's focus on improving access to high-quality surgical care in regional communities". "This investment means that residents of Newcastle and surrounding areas have access to the same high-quality surgical services available in major metropolitan centres," Ms Thurwood said. "Importantly, it also supports better care co-ordination across Ramsay's existing hospitals in the region, helping patients move more easily through the system." Oral maxillofacial surgeon Ben Gupta said the new centre would "benefit local patients and clinicians". "It's exciting to be part of this modern facility that will provide exceptional patient care. It's a great step forward for specialist care in the region," Dr Gupta said. The Newcastle Herald recently reported a $5 million clinical trials operation - run by Novatrials - will open in Charlestown in August. Along with the surgical centre, this clinical trials operation is based at the Charlestown Health Hub. The hub also includes imaging, pathology, a GP clinic and skin cancer clinic. Meanwhile, the Albanese government has called for expressions of interest for an urgent care clinic at Maitland. Paterson MP Meryl Swanson said "this is fantastic news for our community and a big win for locals". The Medicare clinics provide "walk-in, bulk-billed treatment for urgent but non-life-threatening emergencies". They aim to reduce pressure on emergency departments. Federal Health Minister Mark Butler said the clinics were "filling the gap between GPs and hospital emergency rooms". The Newcastle Herald reported in April that high demand for the clinics at Charlestown and Lake Haven had prompted the government to expand them. At the time, Mr Butler said those two clinics were "some of the busiest in the country". Labor made an election promise to fund a second doctor at the clinics. As of now, the government funds the clinics with about $1.2 million a year for one doctor, nurse, receptionist and running costs. A $20 million surgical centre has opened in Charlestown, boosting access for patients to numerous procedures. The Ramsay Health Care centre includes three operating theatres with capacity to expand to four, along with 12 inpatient beds and the latest medical equipment. It provides specialist services including endoscopy, oral and maxillofacial surgery, plastic and reconstructive surgery, ENT, gynaecology and Mohs skin cancer surgery. Ramsay - the country's largest private hospital operator - also owns Lake Macquarie and Warners Bay private hospitals. Its new centre was designed to "meet growing local demand for surgical procedures close to home and reduce pressure on larger hospitals in the region". The move comes amid volatility in the sector with the receivership of Healthscope, whose hospitals include Newcastle and Hunter Valley private. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. Claire Thurwood, CEO of Ramsay Surgical Centres, said the Charlestown site "demonstrates Ramsay's focus on improving access to high-quality surgical care in regional communities". "This investment means that residents of Newcastle and surrounding areas have access to the same high-quality surgical services available in major metropolitan centres," Ms Thurwood said. "Importantly, it also supports better care co-ordination across Ramsay's existing hospitals in the region, helping patients move more easily through the system." Oral maxillofacial surgeon Ben Gupta said the new centre would "benefit local patients and clinicians". "It's exciting to be part of this modern facility that will provide exceptional patient care. It's a great step forward for specialist care in the region," Dr Gupta said. The Newcastle Herald recently reported a $5 million clinical trials operation - run by Novatrials - will open in Charlestown in August. Along with the surgical centre, this clinical trials operation is based at the Charlestown Health Hub. The hub also includes imaging, pathology, a GP clinic and skin cancer clinic. Meanwhile, the Albanese government has called for expressions of interest for an urgent care clinic at Maitland. Paterson MP Meryl Swanson said "this is fantastic news for our community and a big win for locals". The Medicare clinics provide "walk-in, bulk-billed treatment for urgent but non-life-threatening emergencies". They aim to reduce pressure on emergency departments. Federal Health Minister Mark Butler said the clinics were "filling the gap between GPs and hospital emergency rooms". The Newcastle Herald reported in April that high demand for the clinics at Charlestown and Lake Haven had prompted the government to expand them. At the time, Mr Butler said those two clinics were "some of the busiest in the country". Labor made an election promise to fund a second doctor at the clinics. As of now, the government funds the clinics with about $1.2 million a year for one doctor, nurse, receptionist and running costs. A $20 million surgical centre has opened in Charlestown, boosting access for patients to numerous procedures. The Ramsay Health Care centre includes three operating theatres with capacity to expand to four, along with 12 inpatient beds and the latest medical equipment. It provides specialist services including endoscopy, oral and maxillofacial surgery, plastic and reconstructive surgery, ENT, gynaecology and Mohs skin cancer surgery. Ramsay - the country's largest private hospital operator - also owns Lake Macquarie and Warners Bay private hospitals. Its new centre was designed to "meet growing local demand for surgical procedures close to home and reduce pressure on larger hospitals in the region". The move comes amid volatility in the sector with the receivership of Healthscope, whose hospitals include Newcastle and Hunter Valley private. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. Claire Thurwood, CEO of Ramsay Surgical Centres, said the Charlestown site "demonstrates Ramsay's focus on improving access to high-quality surgical care in regional communities". "This investment means that residents of Newcastle and surrounding areas have access to the same high-quality surgical services available in major metropolitan centres," Ms Thurwood said. "Importantly, it also supports better care co-ordination across Ramsay's existing hospitals in the region, helping patients move more easily through the system." Oral maxillofacial surgeon Ben Gupta said the new centre would "benefit local patients and clinicians". "It's exciting to be part of this modern facility that will provide exceptional patient care. It's a great step forward for specialist care in the region," Dr Gupta said. The Newcastle Herald recently reported a $5 million clinical trials operation - run by Novatrials - will open in Charlestown in August. Along with the surgical centre, this clinical trials operation is based at the Charlestown Health Hub. The hub also includes imaging, pathology, a GP clinic and skin cancer clinic. Meanwhile, the Albanese government has called for expressions of interest for an urgent care clinic at Maitland. Paterson MP Meryl Swanson said "this is fantastic news for our community and a big win for locals". The Medicare clinics provide "walk-in, bulk-billed treatment for urgent but non-life-threatening emergencies". They aim to reduce pressure on emergency departments. Federal Health Minister Mark Butler said the clinics were "filling the gap between GPs and hospital emergency rooms". The Newcastle Herald reported in April that high demand for the clinics at Charlestown and Lake Haven had prompted the government to expand them. At the time, Mr Butler said those two clinics were "some of the busiest in the country". Labor made an election promise to fund a second doctor at the clinics. As of now, the government funds the clinics with about $1.2 million a year for one doctor, nurse, receptionist and running costs. A $20 million surgical centre has opened in Charlestown, boosting access for patients to numerous procedures. The Ramsay Health Care centre includes three operating theatres with capacity to expand to four, along with 12 inpatient beds and the latest medical equipment. It provides specialist services including endoscopy, oral and maxillofacial surgery, plastic and reconstructive surgery, ENT, gynaecology and Mohs skin cancer surgery. Ramsay - the country's largest private hospital operator - also owns Lake Macquarie and Warners Bay private hospitals. Its new centre was designed to "meet growing local demand for surgical procedures close to home and reduce pressure on larger hospitals in the region". The move comes amid volatility in the sector with the receivership of Healthscope, whose hospitals include Newcastle and Hunter Valley private. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. Claire Thurwood, CEO of Ramsay Surgical Centres, said the Charlestown site "demonstrates Ramsay's focus on improving access to high-quality surgical care in regional communities". "This investment means that residents of Newcastle and surrounding areas have access to the same high-quality surgical services available in major metropolitan centres," Ms Thurwood said. "Importantly, it also supports better care co-ordination across Ramsay's existing hospitals in the region, helping patients move more easily through the system." Oral maxillofacial surgeon Ben Gupta said the new centre would "benefit local patients and clinicians". "It's exciting to be part of this modern facility that will provide exceptional patient care. It's a great step forward for specialist care in the region," Dr Gupta said. The Newcastle Herald recently reported a $5 million clinical trials operation - run by Novatrials - will open in Charlestown in August. Along with the surgical centre, this clinical trials operation is based at the Charlestown Health Hub. The hub also includes imaging, pathology, a GP clinic and skin cancer clinic. Meanwhile, the Albanese government has called for expressions of interest for an urgent care clinic at Maitland. Paterson MP Meryl Swanson said "this is fantastic news for our community and a big win for locals". The Medicare clinics provide "walk-in, bulk-billed treatment for urgent but non-life-threatening emergencies". They aim to reduce pressure on emergency departments. Federal Health Minister Mark Butler said the clinics were "filling the gap between GPs and hospital emergency rooms". The Newcastle Herald reported in April that high demand for the clinics at Charlestown and Lake Haven had prompted the government to expand them. At the time, Mr Butler said those two clinics were "some of the busiest in the country". Labor made an election promise to fund a second doctor at the clinics. As of now, the government funds the clinics with about $1.2 million a year for one doctor, nurse, receptionist and running costs.
Sydney Morning Herald
22-06-2025
- Health
- Sydney Morning Herald
Starting school should be a happy milestone. For this family, it's a reminder of tragedy
'We were told a lot of it was because [the hospital] had just opened, but five years on, those problems still appear to be going on,' Helen said. Now, they are telling their story for the first time, hoping to have their son's death re-investigated and ensure the hospital learns from mistakes made under Healthscope as it moves into public hands. 'Life or death' Asher and Finn were monochorionic diamniotic identical twins, meaning they shared a placenta but each had their own sac. The Broadleys knew the pregnancy was high-risk. They were diligent, easing their parental anxieties by counting fetal kicks and regular visits to specialists. They wanted to manage the pregnancy through Royal North Shore, wary about a string of highly publicised mishaps at Northern Beaches in its first year. But they were assured the hospital could care for high-risk pregnancies and, despite never seeing the same obstetrician twice, the first 30 weeks went relatively smoothly. Then, one Sunday evening, the twins went quiet. They were moving less, their kicks were softer. The hospital's birthing unit told them to come in for precautionary checks. Busy midwives struggled to detect their heart rates and, at one stage, gave the monitor to Dan while they saw other patients. 'I'm a graphic designer, I'm not a doctor. It just seemed bizarre,' he said. Helen was kept overnight for monitoring, but medical records show the twins' vitals were not monitored from 11pm until 8.30am. When midwives conducted morning observations, they discovered one twin had an abnormal heart rate. The investigation found this should have triggered a 'rapid response' escalation under the hospital's own protocols. Instead, a specialist doctor didn't assess the twins until 9:30am, when an obstetrics consultant told Helen it was a 'life and death situation' and called for an emergency caesarean. What had been a calm Monday morning descended into a blur. People rushed to Helen's bedside – shouting, pulling her clothes off, sticking needles in her arm. She had only just told Dan to go into work, but now she was given her phone to tell him they were going to deliver their twins. 'We were told a lot of it was because it [the hospital] had just opened, but five years on, those problems still appear to be going on.' Helen Broadley When Dan arrived at the hospital half an hour later, the twins had been delivered. Neither were breathing. Reunited in the recovery room, Dan and Helen were told they had lost Finn, and Asher had been rushed to Royal North Shore in a critical condition. They were left holding Finn, unable to fathom what had just happened as they watched cars pass on the highway below. Life after Healthscope Several findings from the root cause analysis – including that staff had developed 'work around' methods to document and locate key information on the EMS – have since been echoed in a scathing audit and the investigation into Joe Massa's death. These revelations compelled the Broadleys to share their story and call for Finn's death to be re-investigated 'without the involvement of Healthscope'. 'I don't want to make a woman who's already anxious about her pregnancy feel more anxious,' Helen said. 'But, to us, it feels like there were some real failings in the care we received.' A spokesperson for Northern Sydney Local Health District said they had provided ongoing support to Dan and Helen since the loss of baby Finn. They said all 12 recommendations had been implemented, and Healthscope was required to submit regular quality improvement plans for maternity services. But the government could not control the IT systems Healthscope chose to use, they said. On Monday, state parliament will debate a bill seeking to legislate an end to the public-private partnership with Healthscope. Asked if he would support another investigation, Health Minister Ryan Park said it would be inappropriate to 'duplicate or circumvent' the original report or a review under way by the Health Care Complaints Commission. 'My deepest sympathies are with the Broadley family for this unimaginable tragedy,' he said.
