State and territory ministers have sought assurances that the Albanese government will pay for critical care if Healthscope hospitals close, with the collapsed private health giant’s future now controlled by hedge funds and China’s largest state-owned banks.

The country’s second-largest private hospital operator was owned by New York-listed asset manager Brookfield, but called in administrators on Monday after running out of time to pay interest and rent. Healthscope treats thousands of patients every week and its lenders could choose to close less profitable hospitals, putting strain on the public health system.