Healthscope’s terminal prognosis could be just the start
The collapse of Healthscope raises new questions about the operating model for private hospitals and how they will remain viable with another eight marked for closure.
Healthscope has been in critical care for years, but it was not until earlier this year when private equity giant Brookfield Asset Management realised the prognosis on its disastrous $5.7 billion investment in Australian hospitals was terminal.
It should have been a straight-forward deal for the New York-based group, which has $1 trillion in assets under management. Australia’s population is ageing and growing, and a huge chunk has private health insurance. People are always going to get sick.
Michael SmithHealth editorMichael Smith is the health editor for The Australian Financial Review. He is based in Sydney. Connect with Michael on Twitter. Email Michael at michael.smith@afr.com
