Owners of the Northern Beaches Hospital Healthscope have reached ‘in-principle’ agreement with the State Government to hand over the whole hospital for $190 million – putting private services under a cloud.
This follows months of negotiations between the government, Healthscope and its receivers (the Australian arm of the company went into receivership earlier this year), and will see the hospital move to the direct control of the Northern Sydney Local Health District by mid-2026.
Under the agreement, the entire 494-bed hospital will return to public ownership. All clinical and support staff currently working at Northern Beaches Hospital will be offered jobs by NSW Health at the facility.
The State Government will now finalise the legal and commercial arrangements required for transfer, including workforce transition.
It will also consult closely with clinicians to determine future clinical services and an operating model, including the role of private services in the hospital footprint.
Speaking in Parliament on 14 October, Health Minister Ryan said in response to a question from Pittwater MP Jacqui Scruby, that the extent of private operators had not yet been determined.
“We are aware of the important role private clinicians play…to take load off our public system. We’re not in a position yet to outline exactly what that model will look like. I assure you we are engaging with (private) clinicians.”
Elouise and Danny Massa, the parents of two-year-old Joe Massa who died at the hospital late last year, have been tireless advocates for the facility being brought into public hands.
Their efforts led to the passing this year of Joe’s Law, a legal commitment by the NSW Government to prevent any future attempts to create public-private partnerships at acute care hospitals.
Independent MPs Michael Regan and Jacqui Scruby have also been strong campaigners in their local community for reversing the privatisation.
Premier Chris Minns said: “We’ve reversed one of the worst decisions of any NSW Government, where a private hospital model was foisted on the people of the Northern Beaches.
“Our state’s acute hospital services that provide lifesaving care to the people of NSW should not be privatised and thanks to this decision, no hospital in NSW will be.
“Because of Elouise and Danny’s courage and persistence, Joe’s Law now ensures that no future government can repeat the mistakes that led to the Northern Beaches Hospital privatisation. Their advocacy will leave a lasting legacy for every patient and every family who relies on our public health system.”
Treasurer Daniel Mookhey said the deal represented ‘strong value for money.’ “The government has been clear all along that there will be no windfall gains for Healthscope at the expense of NSW taxpayers. This deal makes good on that commitment.”
The news comes as hearings started last Friday in NSW Parliament into the safety and quality of health services at the hospital, following written submissions – with over 800 sent through.
Minister Park added: “I want to be upfront that this will not be without its challenges, but patient safety sits at the very heart of this handback to public ownership.”
