Latest news with #McGrathNicol
Sky News AU
27-05-2025
- Business
- Sky News AU
Healthscope seeks buyers after collapse
Australia's second-largest private hospital operator Healthscope was placed into administration yesterday, with debts of about $1.4 billion. The company operates 37 hospitals, employs about 19,000 staff, and performs nearly three-quarters of all elective surgeries across Australia. However, its Canadian hedge fund owner, Brookfield, has struggled to manage the business since buying it in 2019 due to rising costs and a disagreement with health insurers over patient fees. McGrathNicol Partner Jason Ireland joins Sky News business reporter Ed Boyd to discuss the next steps in the selling process for the hospital operator.
ABC News
27-05-2025
- Health
- ABC News
Healthscope insists 'business as usual' at Darwin Private Hospital, amid receivership
Healthscope has moved to quell fears the Northern Territory could lose its only private hospital, as financial troubles cast uncertainty over the medical centre's future. Healthscope is Australia's second-largest private hospital operator, running 37 hospitals across the country, including Darwin Private Hospital (DPH). The financially troubled operator collapsed into receivership on Monday, just one week before its maternity services at DPH were due to end on June 6. The company is now looking for new owners, having appointed corporate restructuring firm McGrathNicol as its receiver. The instability is particularly unnerving for patients in the NT, where public hospitals are often stretched to capacity and the looming closure of DPH's birthing ward is prompting women to travel interstate. Healthscope senior director of corporate affairs, Jim Cooper, said DPH would continue to operate all services as normal except maternity care. "It is completely, 100 per cent business at usual at Darwin Private," he told ABC Radio Darwin. "Our staff are there ready to care for you. Bookings are being taken as normal." Mr Cooper said Healthscope anticipated the process of finding new owners would take about 8 to 12 weeks. He said the company had already received 10 indicative offers for either the whole network or for individual hospitals. "Finding an owner won't be the problem," he said. "It'll just be a matter of what is the best ownership structure going forward." He said Healthscope had enough funds to keep all hospitals open during the sale process, with the Commonwealth Bank offering an additional $100 million in loan funding as extra support. "We can go on as long as we need to until we get clarity, so there will be no issue with money drying up or any pressure on hospitals staying open," he said. The Australian Medical Association's (AMA) new NT president, John Zorbas, said the sector needed a concrete timeline for the transition. "Our main priority here is to ensure … the safe care of patients in Darwin Private Hospital and the knock-on effects that Royal Darwin Hospital would suffer were Darwin Private to close," he told ABC Radio Darwin. Dr Zorbas said the NT's public health system was "bursting at the seams". NT Health Minister Steve Edgington said the collapse of Healthscope was "extremely disappointing" following the company's closure of its Darwin maternity services. He said he hoped a buyer would soon take over operation of the private hospital. "This is extremely important and our focus is really all about ensuring that Territorians have choice when it comes to the public and private system," he said. Federal Health Minister Mark Butler said he recognised the situation was "highly distressing to patients, staff and local communities". However, he said the government would not offer a taxpayer bailout. When DPH closes its birthing ward on June 6, the NT will be the only jurisdiction in Australia without private maternity services. Despite outrage from expectant mothers, Mr Cooper said he doubted the hospital's future operator would reinstate those services. "The decision to close the maternity service was not so much due to ownership concerns or financial challenges at the parent company level," he said. "It was really about the fact we've seen birth numbers decline in the last decade, from say 700 [per year] to less than 300 now. "It's just not feasible for us to continue to run a maternity service on those very low birth numbers."
Time of India
26-05-2025
- Business
- Time of India
Healthscope in critical condition: Inside the collapse of Australia's second-biggest private hospital network
Healthscope , the second-largest private hospital network of Australia, has entered receivership with corporate restructuring firm McGrathNicol appointed to oversee the sale of its assets, raising serious questions about the future of private healthcare for thousands of Australians. But despite the financial collapse of its parent company, the group insists that patient care will continue without disruption and with no immediate impact on its 19,000 staff or patient care. The company operates 37 hospitals across the country, employing around 19,000 staff and treating over 650,000 Australians annually. Though its parent entity, owned by North American private equity firm Brookfield, has collapsed under financial pressure, the operational side of the business remains intact. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trekking pants for mountain sports and adventure travel Trek Kit India Shop Now Undo 'We're still scrubbing in. Still showing up,' said one senior nurse in Melbourne. 'The uncertainty is real, but so is our duty to patients.' Brookfield, which acquired Healthscope for $5.7 billion in 2019, has seen its investment deteriorate. After selling off the hospital properties to trusts and failing to meet rent obligations, lenders, led by CBA, stepped in and appointed McGrathNicol as receivers. KordaMentha will represent Brookfield's interests during the sale. Live Events 'This is a receivership of the holding company, not the hospitals themselves,' said CEO Tino La Spina, who stressed that no hospitals will close and no staff will be laid off. 'All 37 of our hospitals continue to operate as normal,' he said. '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.' Currently available funds Healthscope has $110 million in cash on hand, and the Commonwealth Bank has provided an extra $100 million in funding to keep operations running smoothly while the business is sold. Ten indicative offers have already been received, some for the full business. Federal Health Minister Mark Butler said he received direct assurances from the CEO that every booked surgery, including childbirths and joint replacements, would proceed as scheduled. 'I will hold the company and the receivers to that commitment,' Butler said. Butler was clear that there would be no government bailout. 'This is an overseas private equity firm. They will not receive taxpayer support,' he said. 'Private hospitals receive nearly $8 billion a year in public subsidies. That comes with responsibility.' Healthscope insists the focus remains unchanged, despite the corporate upheaval: care will continue, and patients can proceed with confidence.
West Australian
26-05-2025
- Business
- West Australian
Private hospital operator Healthscope falls into receivership but assures patients it's business as usual
The nation's second-biggest private hospital operator, Healthscope, has gone into receivership after struggling to pay an outstanding debt worth over $1 billion. Healthscope's lenders on Monday appointed McGrathNicol Restructuring as receivers after being handed control by its former owner, US private equity giant Brookfield, earlier in May. KordaMentha has been appointed as administrator. Health Minister Mark Butler — who was reappointed to his role in Anthony Albanese's second term of government — has already said it would not bail Healthscope out. In a statement, Healthscope said while the parent companies were in receivership, the operational business — which runs the hospitals — is not. It said all 37 hospitals across the country — including the Prince of Wales in Sydney and Melbourne's Knox Private Hospital — would remain open and operating on a business-as-usual basis with no impact on its 19,000 staff, doctors or patient care. In WA, it operates the Mount Hospital on Mounts Bay Road in central Perth. Healthscope chief executive Tino La Spina said there was no interruption to patient care. 'Our incredible teams are all working as normal, providing the high standard of care they always have,' he said. McGrathNicol partner and receiver Keith Crawford said there were no plans for closures or redundancies, and the intention was to transition to new ownership. '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,' he said. 'Our immediate focus is to engage constructively with all key stakeholders to ensure uninterrupted operation of Healthscope hospitals and continuity of best practice standards of patient care.' It comes as Commonwealth Bank provides an additional $100 million in loan funding to help keep the hospitals operating while McGrathNicol undertakes a sales process. The funding package from CBA was in addition to Healthscope's current cash balance of $110m. Healthscope's existing working capital financier is also providing support. Healthscope said key supplier relationships would remain unaffected, with payment terms maintained. The Australian Nursing and Midwifery Federation said it was in discussions with State and Federal governments to avoid closures, and wanted a say in who would control the company. Mr Butler expects an orderly sales process for Healthscope. 'Throughout this process the government has been meeting regularly with Healthscope and we have clear expectations the hospital group, lenders, and landlords to act cooperatively and deliver the least disruptive outcome for patients, staff, and the broader health system,' he said.
Epoch Times
26-05-2025
- Business
- Epoch Times
Australia's 2nd Largest Private Hospital Group Falls Into Receivership
Healthscope, Australia's second-largest private hospital operator, has been placed into receivership by its lenders, with corporate restructuring firm McGrathNicol appointed to oversee the process. The embattled healthcare group, owned by North American private equity firm Brookfield, has struggled under the weight of $1.6 billion in debt and has defaulted on several lease payments. Despite the financial upheaval, the company has confirmed that hospital operations will remain unaffected, and there will be no immediate impact on patients or staff. Healthscope runs hospitals across every state and territory and holds the contract to operate Northern Beaches Hospital in Sydney. Around 650,000 Australians receive treatment through its facilities each year, supported by roughly 19,000 medical and support staff. $100 Million in Extra Funding to Support Operations To ensure continuity of care, the Commonwealth Bank has extended a $100 million loan facility to keep Healthscope's 37 hospitals running while a sale process is underway. The company said its day-to-day operations—separate from the parent entities now in receivership—will continue under the current leadership team, headed by CEO Tino La Spina. Related Stories 5/14/2025 5/13/2025 '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,' La Spina said. The company also revealed it currently holds $110 million in cash reserves. Federal Government Monitoring Transition Health Minister Mark Butler responded saying the development was expected. KordaMentha, an advisory and investment firm, has been appointed as administrator to represent the owners' interests during the sale process. 'This decision to place the ownership of Healthscope into receivership is not unexpected. We've been meeting as the government with Healthscope now for some considerable time,' Butler said. He emphasised that protecting staff and patient interests would be the government's top priority. 'I want to be clear that I expect to see an orderly sale process eventuate from this decision to a new owner with no impact on patients and no impact on hard working staff,' Butler said. 'I had a conversation over the last half an hour with the CEO Tino La Spina, and I sought an assurance from him that the thousands of Australians who right now have a birth plan or a knee reconstruction booked at a Healthscope hospital can be confident that that procedure will go ahead as planned and as booked, and I receive that assurance from the Healthscope CEO.'
