‘No impact’ on Northern Beaches Hospital
The operator of Northern Beaches Hospital, Healthscope Newco, has entered into receivership, the company announced today, and a sale process has started for the Australian health group. There is no plan to close hospitals or undertake redundancies, Healthscope confirmed.
It is ‘business as usual’ at Healthscope’s 37 hospitals, including Northern Beaches, with ‘no impact staff, doctors and patient care,’ Healthscope added.
McGrathNicol has been appointed as receivers and managers of ANZ Hospitals
and Healthscope Newco.
Commonwealth Bank has provided $100 million to assist in the sale process. “This is in addition to Healthscope’s current cash balance of $110 million, and substantial
additional asset backing across the group,” Healthscope said.
Wakehurst Independent MP Michael Regan called on the NSW Government to expedite the process to bring the entire Northern Beaches Hospital (both public and private portions), operated by Healthscope, back into public hands. Pittwater MP Jacqui Scruby backed his call.
Mr Regan has also reassured the community that the NSW Government is monitoring the situation closely and frontline health services – including emergency, maternity and surgery – at Northern Beaches Hospital will remain operational regardless of who is running the company.
“This type of ongoing volatility and uncertainty demonstrates why it is completely inappropriate to have private equity running our local public hospital,” Mr Regan said.
“Northern Beaches Hospital is already understaffed and under-resourced. There is no fat in the system. I dread that this development will mean even more focus on the bottom line, instead of where it should be on staff and patients.
“I say to the NSW Government, loud and clear: step up and urgently end this diabolical contract.”
There are two ways the hospital contract can be terminated and returned to public hands. Either by the operator defaulting or the state voluntarily terminating the contract.
“If going into receivership doesn’t constitute a default under the contract, then the NSW Government needs to urgently step up and terminate the contract themselves,” Mr Regan said.
Ms Scruby said it was ‘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. Northern Beaches residents deserve a hospital with enough beds and services to meet the needs of our growing community, now and into the future.”