Australia’s second-largest hospital operator has gone into receivership with creditors owed $1.6billion.
Healthscope, which was bought by Canadian firm Brookfield for $5.7billion in 2019, has appointed receivers led by McGrathNicol partner Keith Crawford.
Commonwealth Bank and Westpac have agreed to help keep its 37 private hospitals across Australia open until a new owner is found.
Commonwealth Bank announced on Monday it would provide $100million while Westpac has agreed to continue to provide assistance to help receivers sell the business, offering some clarity to the provider’s 19,000 employees.
Mr Crawford said the focus was to engage ‘constructively with all key stakeholders to ensure uninterrupted operation of Healthscope hospitals’.
He said the intention was to transition all hospitals to new ownership, with no plans for closures or redundancies.
Healthscope said while the parent entity had entered receivership, the operational business, which runs the hospitals, has not.
Every hospital would operate as normal, chief executive Tino La Spina said.
The company employs about 19,000 in Australia (above, a stock of NSW Health nurses)
He revealed the additional funding would ensure a stable path to sale.
‘There is no interruption to the outstanding care we provide … the additional funding, while we do not anticipate it being required, provides additional support,’ Mr Spina said.
‘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 Australian Nursing and Midwifery Federation earlier said it had been working with members and stakeholders navigating the financial difficulties and uncertainty.
‘For the nurses and midwives who care for patients in Healthscope every day, this is a very difficult and worrying time,’ union official Phoebe Mansell said.
‘The financial collapse of Healthscope is a stark and shocking reminder of the dangers of privatising essential healthcare services.’
The operator owns the Northern Beaches Hospital in Sydney, Hobart Private Hospital, Darwin Private Hospital and Knox Private Hospital in Melbourne.
In May 2024, then chief executive Greg Horan said even though the sector was ‘facing considerable headwinds’, providing the ‘best care’ remained a top priority.
The operator manages 37 private hospitals, the chief executive said there would be ‘no interruption’ to care for patients
The company came under scrutiny following the death of two-year-old Joe Massa at the Northern Beaches Hospital in September 2024.
The toddler died after being wrongly triaged and waiting two hours for a hospital bed. He was later transferred to Sydney Children’s Hospital in Randwick following a cardiac arrest but succumbed to brain damage.
Healthscope moved to shutdown maternity services at Darwin Private Hospital and Hobart Private Hospital earlier in 2025.
