‘Extreme disappointment’ as Healthscope collapses into receivership
Healthscope, the operator of Darwin Private Hospital, has announced it has entered voluntary receivership.
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Financially troubled private hospital operator Healthscope has announced it has entered into voluntary receivership.
The operator of 37 hospitals – including Darwin Private Hospital – was placed into voluntary liquidation by a syndicate of banks and huge funds after being handed control by its previous owner, Canadian parent global investment company Brookfield.
Healthscope’s financial troubles have been alluded to in the past as the company has faced high rental costs on hospital sites and struggled to offload its $1.4 billion in debt.
Over the weekend, this masthead published concerns from private insurers on the future of Darwin’s private hospital weeks as the private maternity ward is due to close and the company was put up for sale.
As Healthscope enters receivership, its lenders have appointed corporate restructuring firm McGrathNicol to oversee the sale of the business.
The Commonwealth Bank have loaned McGrathNicol a $100 million funding package to support operations during the process. This adds to Healthscope’s current $110 million cash balance.
As a result, Healthscope said its hospitals will remain open and operating as usual during this period.
The NT Minster of Health, Steve Edgington said the news was “extremely disappointing”.
He said there have been talks with the Finocchiaro CLP Government including the Federal Minister for Health, Mark Butler, earlier today.
“Healthscope has assured me that despite the legal and financial complexities, the operation of Darwin Private Hospital will continue throughout this process,” he said.
“Healthscope’s hospitals remain operational with no impact on staff, clinicians or patient care.
“They continue to provide care to patients without change to existing agreements.
“Our government remains directly engaged with all relevant parties as we work through what we hope will be a transfer to new ownership.”
Mr Edgington added that he is determined to ensure that Territorians continue to have access to private hospital services.
He added: “We know how important that is for consumer choice and creating the Territory lifestyle we all want to enjoy.”
Healthscope CEO, Tina La Spina, echoed this reassurance and said hospitals and staff will remain unaffected during this period.
“Today’s appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients,” she said.
“There is no interruption to the outstanding care we provide.
“Our incredible teams are all
working as normal, providing the high standard of care they always have. The additional
funding, while we do not anticipate it being required, provides additional support.”
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