Healthscope must not be let off the hook with taxpayers footing the bill

The future of Northern Beaches Hospital hangs in the balance, as the New South Wales Government weighs a potential buyback of the hospital’s public component. This follows mounting scrutiny over patient care and the financial instability of its private operator, Healthscope.

The hospital, built and managed through a public-private partnership by Healthscope under the previous NSW Liberal Government, is the only major hospital in the state operating under such a model. It provides both private and public services, including emergency care, within a single facility.

Concerns about the hospital’s operations have intensified in recent years. The deaths of a toddler who presented to the emergency department and a newborn have prompted a parliamentary inquiry, now running alongside a performance audit by the NSW Audit Office.

NSW Treasurer Daniel Mookhey said, “After the way Healthscope has managed this partnership, it should not expect to walk away from the Northern Beaches Hospital with a profit. The NSW Government will be watching to ensure that no-one is trying to make a windfall gain at the expense of the people of NSW.

“The Government will engage with Healthscope management after questions of its ownership and whether it remains a going concern are resolved.”

Healthscope, owned by global private equity firm Brookfield, has accumulated a debt burden of $1.6 billion. The company has defaulted on lease payments, is attempting to renegotiate terms with creditors, and has begun shutting down or offloading several smaller private hospitals.

Healthscope CEO Tino La Spina stated, “We believe it is best for the patients, staff and the northern beaches community that it is returned to NSW Health, if that is the government’s preferred outcome. In the current circumstances, we believe Northern Beaches Hospital will operate more effectively as part of the public hospital system and its future is assured.”

The original contract, which committed taxpayers to a $2.13 billion agreement to build and operate the hospital through to 2038, is now under renewed scrutiny.

The independent MP for Wakehurst, Michael Regan, said “I don’t want to see Healthscope let off the hook or seek to invoke clauses to maximise a financial return, with NSW taxpayers footing the bill. The NSW auditor general’s report is imminent and they must remain accountable.”

NSW Health Minister Ryan Park reiterated the government’s longstanding opposition to public-private models for acute care hospitals.

“We will carefully consider any proposal regarding Northern Beaches Hospital. We can assure the community that Northern Beaches Hospital will continue to operate without interruption during any discussions,” he stated.

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