Latest news with #financialviability
BBC News
21-06-2025
- Business
- BBC News
Liverpool Street station plan a financial 'gamble', opponents say
The redesign of London's Liverpool Street station has been described by opponents as a "billion pound gamble" after a report raised doubts over its financial review found the planned scheme was not currently profitable due to the expected costs of revamping the Victorian site compared with the income it would the plan was close to becoming viable due to a likely upturn in economic Victorian Society said relying on an economic boost was "remarkably cavalier and not in the public interest". Network Rail said it was confident the project could progress and that it would generate "hundreds of millions of pounds". The firm said the project aimed to future-proof the station for the 200 million passengers using it each original redevelopment proposals were scaled back due to strong opposition. But a new office block above the station is still planned, as well as new entrances, concourses and some external recent viability assessment, by real estate services firm JLL, was prepared as part of the planning application and weighed up costs against rental values for the concluded the project was not "technically viable" - meaning it would not be profitable based on current growth it said the local office rental market was "cyclical", and was likely to be buoyed if the local authority approved the scheme, according to the Local Democracy Reporting also said "relatively few further efficiencies or market improvement" were needed in order for the plans to become financially sound. The Victorian Society's director James Hughes said: "This is one of the country's most important and impressive historic railway stations, as well as one of its busiest. It should not be a token in a billion-pound gamble."The report itself concludes that the works proposed would not fund the works to the station, only a part of them, unless favourable market conditions emerge," he said.A spokesperson for Network Rail: "Our plan will tackle congestion, improve accessibility and enhance the customer is an operationally led scheme that will generate hundreds of millions of pounds."Although the City property market is cyclical, there is a rising demand for landmark office space."We are confident in being able to bring this scheme forward and working with future partners means the scheme can be delivered at no cost to the customers or the taxpayer."
The Australian
02-06-2025
- Business
- The Australian
Politics latest: Labor's super tax plans most 'destructive tax proposals ever'; PM rejects Hegseth's call to boost defence spending
More related stories The government has quietly changed controversial liquidity rules for aged care providers after outcry over reforms that peak bodies warned would risk the financial viability of organisations that would have to put aside millions of dollars in cash reserves. Read more
ABC News
27-05-2025
- Health
- ABC News
Healthscope collapse puts viability of the privatised health sector in the spotlight
Health industry experts say the collapse of Healthscope is an early warning for the financial viability of privatising hospitals and clinics.
ABC News
26-05-2025
- Business
- ABC News
Healthscope collapse raises questions about the viability of private hospitals
The collapse of Australia's second largest private hospital group is an early warning sign for the financial viability of private hospitals, a health policy expert says. Healthscope's network of 37 private hospitals treat about 650,000 Australians each year and employ about 19,000 staff nationally. Owned by the Canadian-American investment firm Brookfield, the indebted operator fell into receivership on Monday after its syndicate of banks and hedge funds withdrew support. It appointed corporate restructuring firm McGrathNicol as receiver and promised patients and staff it would keep its hospitals open. Yet the collapse of a major hospital care provider has raised questions about the financially viability of Australia's private health sector. Although Federal Health Minister Mark Butler described Healthscope's struggle as "unique," he recognised there were "challenges" for the profitability of private hospitals. Meanwhile, Monash University Professor of Health Economics, Anthony Scott, said the collapse of the business is a signal that the private health sector may shrink. Dr Scott said private hospital operators were struggling to maintain profitability due to workforce shortages and higher costs of supplies and equipment. This has put operators at loggerheads with health insurers that fund the system but do not want to charge customers more. "Hospitals want more money for the increased activity and costs of providing their services," Dr Scott said. "Whereas health insurers, particularly the for-profit health insurers, want to keep premiums down for members so that they're profitable too." The tension between the two became evident in September 2024 when Healthscope threatened to end agreements with private health insurers. Healthscope owner Brookfield still owes $1.6 billion to lenders and has been unable to pay to keep operating its facilities, including Sydney's Northern Beaches Hospital. "There is a general feeling in the sector that it's hard to make money from private hospitals at the moment," Dr Scott said. He added the drop in private insurance memberships and knock-on effects of the Covid pandemic are continuing to put pressure on the private health sector. Speaking at a media conference on Monday, Federal Health Minister Mark Butler admitted "there are some viability challenges to private hospitals as a sector". "That's why a couple of months ago I announced my expectation to insurers that they would lift the benefit payments ratios," he said. "But I think people who observe this part of our healthcare system understand that Healthscope and its ownership structure ... is something of a unique case." Still, Professor Scott said Healthscope's collapse shows that private equity firms do not see hospitals as financially viable. "It's an important issue, particularly when costs are increasing and profits are not to be made, but then again some people might argue that you shouldn't make profits from health." The latest figures show about half of all hospitals in Australia are private, and of these 62 per cent are for-profit, while the rest are run by not-for-profit organisations. Dr Scott said non-profits like St Vincent's were "more likely to weather the storm" of the cost-of-living challenges because of their ownership structures. This means the collapse of Healthscope does not necessarily spell the beginning of the end of the sector. "Private hospitals might still exist, but they might be on a smaller footprint because they will have to close parts of their services to keep costs down," Dr Scott said. "Remember some maternity units have closed in recent years." Healthscope chief executive Tino La Spina said it is "business-as-usual" and all 37 of the operator's private hospitals would remain open during the receivership. Healthscope said it has a current cash balance of $110 million to keep the business running, with the Commonwealth Bank offering an additional $100 million in loan funding. "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. "The additional funding, while we do not anticipate it being required, provides additional support." Minister Butler said there would be no taxpayer bailout, with Healthscope having enough funds for "several months of operations" as it goes through an "orderly stable process of the sale". While he did not say what would happen if the money ran out before all the hospitals find new owners, he did say a "disorderly" process would have an effect. Dr Scott added public hospitals were already under a lot of pressure too, with health policy rhetoric in recent years shifting toward strengthening primary care to lower demand. "In the next year or so, we're going to see the same issues from public hospitals wanting more money from the government," he said. "[The rhetoric] is all about preventing people from going into the hospital in the first place, but a lot of those policies are not in place yet." He suggested revisiting the regulation of prices and contract negotiations between private hospitals and private health insurers could potentially help the private hospital sector to be more efficient. "The funding models would need to be looked at in the long-term to ensure the sustainability of the whole hospital sector, not just private hospitals." Healthscope runs the 37 facilities listed below. NSW Victoria Queensland South Australia Western Australia Tasmania ACT Northern Territory
