Canberra’s National Capital Private Hospital is one of 37 hospitals operated by Healthscope. Photo: Claire Fenwicke.
National Capital Private Hospital patients have been assured there will be no impact on care after the parent company of its operator, Healthscope, went into receivership yesterday (26 May).
McGrathNicol has been appointed to transition Healthscope’s 37 private hospitals to new ownership. There are no plans for hospital closures or redundancies.
A statement from Healthscope outlined that McGrathNicol would undertake an immediate review of the sale process to date.
“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,” appointed receiver Keith Crawford 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.”
The receivers have secured a $100 million funding package from the Commonwealth Bank of Australia to support operations during the sale process.
Healthscope also has a cash balance of $110 million.
Region has confirmed the ACT Government is not “seeking to purchase” the hospital.
“The ACT Government is closely monitoring the evolving situation with Healthscope, including potential impacts to National Capital Private Hospital,” a spokesperson said.
“While the ACT Government does not oversee private hospitals, we are actively assessing any potential flow-on effects to our public health system.
“[Canberra Health Services] will closely work with any new operator of National Capital Private Hospital about its continued operation on the Canberra Hospital campus.”
Healthscope said that while its parent companies were in receivership, the operational business (which runs the hospitals) was not.
Management team CEO Tino La Spina said there would be no interruption to care.
“All 37 of our hospitals continue to operate as normal and [Monday’s] appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients,” he said.
“Our incredible teams are all working as normal, providing the high standard of care they always have. The additional funding, while we do not anticipate it being required, provides additional support.
“The receivers and management share the same goal of maintaining our market-leading standards of patient care and protecting the business, the hospitals and our amazing people.”
The Healthscope Board has appointed partners from KordaMentha as administrators to represent its interests.
According to the administrators, the appointments only extend to “two non-operating shareholding entities” within the broader Healthscope Group.
“The receivers and managers are now in control of the companies’ assets and undertakings. The receivers and managers will undertake an orderly sale of business campaign,” it stated.
Federal Health Minister Mark Butler said despite Healthscope announcing that its hospitals would continue to operate as normal, this would still be “highly distressing” news for patients, staff and communities that depend on Healthscope’s services.
“Throughout this process, the government has been meeting regularly with Healthscope, and we have clear expectations that the hospital group, lenders, and landlords act cooperatively and deliver the least disruptive outcome for patients, staff, and the broader health system,” he said.
Mr Butler said the government had met with the administrator and receiver to outline its priorities and expectations.
“The government expects all parties to continue to put patient care and workers as their priority. We expect that these hospitals remain a critical part of our healthcare system,” he said.
“The government does not want any of these important assets to be put in jeopardy to satisfy international investors.
“As the government has said all along, there will be no taxpayer bailout. 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.”
North American equity group Brookfield bought Healthscope in 2019.
The first creditors meeting will be held 5 June.
