Latest news with #McGrathNicolRestructuring
Sky News AU
27-05-2025
- Health
- Sky News AU
Joe Massa's parents demand NSW Government acquires Northern Beaches Hospital after Healthscope enters receivership
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.
The Advertiser
26-05-2025
- Business
- The Advertiser
Government bailout ruled out as private hospital giant enters receivership
Healthcare giant Healthscope will not get a government bailout after Australia's second-largest private hospital operator collapsed into receivership, the health minister has confirmed. Receivers from McGrathNicol Restructuring have been appointed after lenders voted to end their support of Healthscope's owner, Brookfield, on May 26. Federal health minister Mark Butler has called on Healthscope CEO Tino La Spina to ensure no disruptions for staff and patients as the healthcare group finds a buyer. "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," he said. Healthscope, which operates 37 private hospitals, has reportedly been unable to keep up with payments on its facilities. More than 19,000 people are employed by the healthcare provider, Mr Butler said. READ MORE: baby dies in childbirth at hospital as chief obstetrician investigates The group's hospitals were expected to remain open and operating on a "business-as-usual basis", Healthscope said. "There is no interruption to the outstanding care we provide. Our incredible teams are all working as normal, providing the high standard of care they always have," Mr La Spina said. Around 650,000 Australians received surgery and care through a Healthscope hospital each year, the health minister said. The embattled healthcare company has asked lenders to take control of the board and the search for a new owner as it faces $1.6 billion in debt. The Commonwealth Bank has provided a $100 million funding package to McGrathNicol, in addition to Healthscope's current cash balance of $110 million, to support operations while it searches for a buyer. "The additional funding, while we do not anticipate it being required, provides additional support," Mr La Spina said. Healthcare giant Healthscope will not get a government bailout after Australia's second-largest private hospital operator collapsed into receivership, the health minister has confirmed. Receivers from McGrathNicol Restructuring have been appointed after lenders voted to end their support of Healthscope's owner, Brookfield, on May 26. Federal health minister Mark Butler has called on Healthscope CEO Tino La Spina to ensure no disruptions for staff and patients as the healthcare group finds a buyer. "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," he said. Healthscope, which operates 37 private hospitals, has reportedly been unable to keep up with payments on its facilities. More than 19,000 people are employed by the healthcare provider, Mr Butler said. READ MORE: baby dies in childbirth at hospital as chief obstetrician investigates The group's hospitals were expected to remain open and operating on a "business-as-usual basis", Healthscope said. "There is no interruption to the outstanding care we provide. Our incredible teams are all working as normal, providing the high standard of care they always have," Mr La Spina said. Around 650,000 Australians received surgery and care through a Healthscope hospital each year, the health minister said. The embattled healthcare company has asked lenders to take control of the board and the search for a new owner as it faces $1.6 billion in debt. The Commonwealth Bank has provided a $100 million funding package to McGrathNicol, in addition to Healthscope's current cash balance of $110 million, to support operations while it searches for a buyer. "The additional funding, while we do not anticipate it being required, provides additional support," Mr La Spina said. Healthcare giant Healthscope will not get a government bailout after Australia's second-largest private hospital operator collapsed into receivership, the health minister has confirmed. Receivers from McGrathNicol Restructuring have been appointed after lenders voted to end their support of Healthscope's owner, Brookfield, on May 26. Federal health minister Mark Butler has called on Healthscope CEO Tino La Spina to ensure no disruptions for staff and patients as the healthcare group finds a buyer. "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," he said. Healthscope, which operates 37 private hospitals, has reportedly been unable to keep up with payments on its facilities. More than 19,000 people are employed by the healthcare provider, Mr Butler said. READ MORE: baby dies in childbirth at hospital as chief obstetrician investigates The group's hospitals were expected to remain open and operating on a "business-as-usual basis", Healthscope said. "There is no interruption to the outstanding care we provide. Our incredible teams are all working as normal, providing the high standard of care they always have," Mr La Spina said. Around 650,000 Australians received surgery and care through a Healthscope hospital each year, the health minister said. The embattled healthcare company has asked lenders to take control of the board and the search for a new owner as it faces $1.6 billion in debt. The Commonwealth Bank has provided a $100 million funding package to McGrathNicol, in addition to Healthscope's current cash balance of $110 million, to support operations while it searches for a buyer. "The additional funding, while we do not anticipate it being required, provides additional support," Mr La Spina said. Healthcare giant Healthscope will not get a government bailout after Australia's second-largest private hospital operator collapsed into receivership, the health minister has confirmed. Receivers from McGrathNicol Restructuring have been appointed after lenders voted to end their support of Healthscope's owner, Brookfield, on May 26. Federal health minister Mark Butler has called on Healthscope CEO Tino La Spina to ensure no disruptions for staff and patients as the healthcare group finds a buyer. "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," he said. Healthscope, which operates 37 private hospitals, has reportedly been unable to keep up with payments on its facilities. More than 19,000 people are employed by the healthcare provider, Mr Butler said. READ MORE: baby dies in childbirth at hospital as chief obstetrician investigates The group's hospitals were expected to remain open and operating on a "business-as-usual basis", Healthscope said. "There is no interruption to the outstanding care we provide. Our incredible teams are all working as normal, providing the high standard of care they always have," Mr La Spina said. Around 650,000 Australians received surgery and care through a Healthscope hospital each year, the health minister said. The embattled healthcare company has asked lenders to take control of the board and the search for a new owner as it faces $1.6 billion in debt. The Commonwealth Bank has provided a $100 million funding package to McGrathNicol, in addition to Healthscope's current cash balance of $110 million, to support operations while it searches for a buyer. "The additional funding, while we do not anticipate it being required, provides additional support," Mr La Spina said.
Sky News AU
26-05-2025
- Business
- Sky News AU
Healthscope enters receivership with $1.6b of debt, forcing lenders to withdraw support and CBA to inject $100m lifeline
A major private hospital operator with $1.6b of debt has entered receivership on Monday and will begin working with a leading firm to sell the business. The lenders behind Healthscope, which runs 37 hospitals across Australia, have opted to call in McGrathNicol Restructuring to find a buyer. Healthscope was purchased by Canadian asset management firm Brookfield in 2019, however, it handed control of the health company to the lenders earlier this month. This syndicate of hedge funds and banks voted on Monday to put the company into receivership. All the hospitals will remain open and operate as usual with no impact to the staff, doctors or patients, Healthscope said. It has received a $100 million lifeline from Commonwealth Bank of Australia, which comes in addition to its current cash balance of $110m 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. The company'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.' 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 said. 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 owns 13 hospitals each in Victoria and NSW, alongside five in Queensland and four in South Australia and about 19,000 staff across the nation. The company came under recently after a two-year old boy died at its private-public Northern Beaches Hospital after a misdiagnosis meant he was classified as a low-priority patient. It led to an inquiry where the NSW government banned public-private hospital partnerships. Local state member Jacqui Scruby said the 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.'
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.
