"Highly distressing" — Healthscope enters administration
Monday, 26 May, 2025
Australia鈥檚 Minister for Health and Ageing, Mark Butler, says news that has entered administration 鈥渨ill be highly distressing to the patients, staff and local communities that depend on Healthscope鈥檚 services鈥. Butler noted that while one of the country鈥檚 largest private healthcare providers has announced that it will remain operating as normal 鈥 with no change to patient care or staffing 鈥 鈥渢his will still be difficult for the hospital鈥檚 employees and their patients鈥.
In a statement released on 26 May (the same day as Healthscope鈥檚 announcement), Butler said that the government has met with the administrator and the receiver to outline its priorities and expectations. 鈥淭he 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,鈥 Butler said.
鈥淭he government does not want any of these important assets to be put in jeopardy to satisfy international investors,鈥 Butler added. 鈥淎s 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.鈥
In the announcement that Healthscope鈥檚 parent entities have entered receivership, with its lenders appointing to work with Healthscope management to complete 鈥渁n orderly sale of the business鈥 and an additional $100 million in liquidity provided to support operations, Healthscope CEO Tino La Spina said, 鈥淎ll 37 of our hospitals continue to operate as normal and today鈥檚 appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients.鈥
Spina added, 鈥淭here 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. 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.鈥
In the Healthscope announcement, it was said that McGrathNicol鈥檚 intention is to transition all hospitals to new ownership, with no plans for hospital closures or redundancies. 鈥淲e want to make it clear that the subsidiaries that own and operate Healthscope鈥檚 network of hospitals are not affected by our appointment to the shareholding companies,鈥 McGrathNicol partner and appointed receiver Keith Crawford said.
鈥淥ur 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,鈥澛燙rawford added.聽鈥淲e will also work closely with Healthscope management to support any operational funding requirements via access to $100 million of new funding from Commonwealth Bank while we pursue an orderly transition of ownership of Healthscope鈥檚 hospitals.鈥
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