New taskforce investigates Northern Beaches Hospital buyback

The management of the Northern Beaches Hospital will be the subject of an urgent investigation, after the Minns government launched a taskforce to examine the hospital’s “disastrous” public-private partnership with embattled private operator Healthscope.

Joe Massa.

The management of the Northern Beaches Hospital will be the subject of an urgent investigation, after the Minns government today launched a taskforce to examine the hospital’s “disastrous” public-private partnership with embattled private operator Healthscope to look at how it can be ended.

The new Northern Beaches Hospital taskforce will examine the future of the privatisation deal, including whether Healthscope has complied with its obligation under its contract with the NSW government

This comes as Healthscope announced on Thursday last week it wished to hand back Northern Beaches Hospital to the public system, after the Minns government banned future public private partnerships at acute care hospitals last month.

The operation of the public-private partnership of the Northern Beaches Hospital will be examined by a new taskforce Pic by: Brendan Read

The beleaguered private health provider has been struggling through massive solvency issues, with reported debts of $1.6 billion. The company’s management of the Northern Beaches Hospital came under heavy scrutiny after the death of two-year-old Joe Massa in September last year.

An internal inquiry found Joe died after receiving incorrect treatment, waiting more than two-and-a-half hours for a bed, despite a dangerously high heartbeat. His mothers pleas for intravenous fluids had been rejected and he later went into cardiac arrest.

Two-year-old boy Joe Massa who died after a routine visit to Northern Beaches Hospital. Picture: Supplied

The new taskforce, made up of Treasury, NSW Health and Cabinet Office officials, will examine the future and current operation of the government’s agreement with Healthscope, which was signed in 2014 and runs till 2038.

Upon Healthscope’s request to return the hospital, NSW Treasurer Daniel Mookhey said the private company should not expect a windfall gain for a “going out of business sale”.

“I’m not prepared to sit and wait on this. I want to know the options now, so we are prepared for any negotiations,” he said.

“That’s why I’ve directed the Taskforce to begin work immediately.”

Health Minister Ryan Park said there will be no impact on health services at the hospital while the taskforce does its work.

Healthscope chief executive Tino La Spina said last week, the public-private partnership was no longer compatible with the government’s objectives and that the company would not expect a windfall.

“While there will be some puts and takes, I can assure you Healthscope will not seek a windfall gain and nor does the project deed allow for it,” he said.

Originally published as New taskforce investigates Northern Beaches Hospital buyback