Healthscope – which runs Darwin Private Hospital along with 37 others around Australia – has been put up for sale by its Canadian parent global investment company Brookfield.

The Australian healthcare provider was bought for $4.4 billion in 2019 by Brookfield, which then sold off most of its property assets.

But Healthscope has struggled to offload its debt of $1.6 million.

This month, the private hospital operator has ceded control to its lenders who are scrutinising the facilities’ outputs and working out next steps.

The Australian reported that out of the 37 hospitals controlled by Healthscope, some assessments have said as few as six facilities are actually making profit meaning many may need to close.

This has set off alarm bells with private insurers, who hold major concerns for the future of Darwin Private Hospital specifically.

It is understood around 99,000 people have private health insurance in the Northern Territory and access private services.

However, unlike many other cities, Darwin Private Hospital is the only private facility in the Northern Territory.

Dr Rachel David, CEO of Private Healthcare Australia (PHA), which represents big health funds like Medibank Private and Bupa, said insurers believed there was a good chance many of Healthscope’s hospitals, including Darwin Private, would be purchased by reliable and experienced providers.

Dr David said insurers were working to ensure those already receiving care or booked to receive care in Healthscope hospitals will be able to continue this without disruption or additional out-of-pocket costs.

“Health funds recognise that Darwin Private Hospital is a very important service because there are no other private hospitals nearby,” Dr David said.

“For this reason, we want it to survive and will do whatever we can to ensure people in the NT retain access to it while ownership is resolved.

“We have already told the federal government that if there are hospitals in a genuine area of need providing essential services where there are none other available, and they are willing to open their books, we will step up to support them.”

Despite disappointment at ward closure, insurers ‘impressed’ by NT Health

In Darwin, the pending sale is hot on the heels of the upcoming closure of the Territory’s only private maternity provider.

With the facility set to close on Friday, June 6, NT Health has been running information sessions this week for affected families.

In the wake of the closure, those with private healthcare will now give birth in Royal Darwin Hospital but have been offered after-care packages which include a hotel stay or return home sooner package.

This week’s sessions, designed to give families a space to ask questions and show them the suites which will be available as part of the after-care package, have been hosted at the Mercure Darwin Airport Resort Hotel.

PHA’s director of policy and research, Dr Ben Harris, travelled up to speak and listen to families at the information session at the Mercure Darwin Airport Resort Hotel.

He shared in the disappointment felt by CEO Dr Rachel David at the closure.

“We are very disappointed by Healthscope’s decision to close its maternity service in Darwin and understand why this has caused concern for expecting parents and health professionals in the Northern Territory,” he said.

“Our top priority is to look after health fund members and try to provide them with what they want from private maternity care including their choice of doctor, continuity of care, and ideally private accommodation for their new family.”

Dr David said insurers had been “impressed” by the NT Government’s response to the situation and that the hotel model worked well elsewhere in Australia.

“Many new parents in other parts of Australia have experienced excellent post-natal care in comfortable hotel accommodation near the hospital where they birthed, as well as at home if that was preferred,” she said.

“These arrangements always involve health professionals, usually midwives, visiting mothers for check-ups with processes in place if either the mother or baby need urgent medical attention. If there is any reason to return to hospital, this is arranged.

“No arrangement, whether public or private, is ever risk free and sometimes new mothers and babies require follow up care for complications.”

She encouraged any concerned health fund members to contact their provider.

Private maternity services struggling in face of declining birthrates

The closure of the private ward is the latest in a long line of facilities shutting their doors.

Healthscope has cited staffing shortages and declining birthrates as the reason for the closure.

With birthrates declining nationally and particularly the Northern Territory’s at a 40-year low, private maternity has struggled.

Dr David added the slowed demand and obstetricians’ out-of-pocket costs being particularly high had made it a challenging landscape.

“Some obstetricians charge more than $5000 to manage a pregnancy before someone gives birth in hospital, and under Australian law, health insurers can’t cover that pregnancy management fee,” she said.

“We are working with the government, hospitals and health professionals to find ways to overcome some of these barriers to private maternity care so we can try to keep it alive”.

Darwin families feeling ‘angry’ and ‘deflated’

According to several families who attended the sessions, questions were asked about the viability of the after-care model without private obstetricians on board, what long-term plans would look like and whether the Private Maternity Ward could be leased back from Healthscope.

While families will receive 24/7 phone support, safety concerns have been raised by private obstetricians and families.

One of the mums due to give birth later this year and who attended the sessions, Tessa Czislowski, said there were certainly still a lot of unanswered questions.

“There was a lot of anger in that room. We just really went around in circles,” she said.

“I understand this is Healthscope’s fault and decision and the government is picking up the pieces but I wish they had this session months ago because it would have made people feel like they’ve been heard and consulted.

“I still feel like they danced around the fundamental problem which is if there is no private maternity service available, how do you expect that you’re going to grow the Territory population?

“I didn’t come away from that with a lot of confidence that really there was any sort of long term strategy or planning in place prior to last night.”

Jess McCluskey echoed these thoughts and said she was feeling “deflated”.

“It just feels like no matter what anybody says, no matter what other options people suggest, it’s too late and nothing’s going to change and nothing’s going to be done,” she said.

“They basically said the model won’t work if people don’t use it, and people won’t use it if their obstetricians don’t support it.

“But for the Northern Territory and other women in the future, [it looks like] we’re going to lose private obstetrics care in Darwin and private maternity health altogether.”

MP Luke Gosling slams NT Government’s response

When Hobart’s facilities were also revealed to be closing in February, the Tasmanian Government approached the commonwealth for help.

The Albanese Government then committed $6 million in funding to support alternative private birthing services operated by not-for-profit provider Calvary.

However, it appears NT Health Minister Steve Edgington only wrote to federal Health Minister Mark Butler with regards to Darwin’s private maternity services at the beginning of May.

He requested $35 million in federal funding to upgrade public maternity services at Royal Darwin Hospital.

Solomon MP Luke Gosling criticised the government’s handling of the situation and last-minute ask for help.

Mr Gosling said they knew about the closure nine months ago and had only “finally” written to the federal government for funding.

“We’re ready to work with the NT Government to fix the emerging crisis in maternity services. But aside from this woeful suggestion to house new mums and babies in nearby hotels for post-natal care, the NT Government has failed to put forward any meaningful. long-term plan to address the impacts of the private hospital’s withdrawal of maternity services,” he said.

Mr Gosling said the federal government was “ready to help” but the Territory government needed to “be willing to do the work”.