Western Hospital set to survive ‘challenging period’ as EY Australia identifies six possible buyers

The western suburbs institution was placed into voluntary administration earlier this year, but now there is a chance it could even see new services added.

Western Hospital at Henley Beach is set to be saved after several suitors emerged following it being placed in voluntary administration in January.

The Advertiser understands a new arrangement may see interests introduce a bulk billing orthopaedic practice — which would be great for the public but would put a financial hole in other private hospitals’ operations.

The 53-bed acute care surgical and medical private hospital called in EY Australia as administrators after “a challenging period” which included a $1m state government lifeline to pay the rent.

Former SA Health chief executive David Swan was appointed to oversee operations as the administrators lead by Colby O’Brien, Robyn Duggan and Adam Nikitins tried to find a new operator.

Western Hospital – Cudmore Terrace, Henley Beach. Picture: Brett Hartwig

Western Hospital – Cudmore Terrace, Henley Beach. Picture: Brett Hartwig

A recent creditors’ meeting was told more than 70 parties had been contacted in relation to a possible sale and this had been whittled down to “six credible parties.”

The meeting’s minutes show the chair, EY’s Adam Nikitins, advised those present “the market for private hospitals was challenging, however that the administrators were continuing to progress discussions regarding the sale.

“These discussions include a number of steps which are commercially sensitive. The administrators continued to move towards completion in a timely manner.”

The meeting also was told a state government loan had $920,000 outstanding and no amount had been repaid by the administrators.

Treasurer Stephen Mullighan has previously told The Advertiser: “The loan technically remains an outstanding debt and while we don’t make loans or forgive them frivolously we need to be pragmatic — this is an important health precinct, we are more focused on making sure the hospital stays open than recovering the loan.”

The creditors meeting passed a resolution that the remuneration of the administrators “for the period from January 29, 2024 to May 31, 2024 be fixed in the amount of $2,520,214.00, plus any applicable GST and may be paid.”

The Cudmore Tce centre offers a wide range of services — taking pressure off the public system — including intensive care, surgical services such as orthopaedics, and cardiology, oncology, dermatology, gastroenterology, ophthalmology, gynaecology, palliative care, pathology, physiotherapy, radiology and a pharmacy.

The hospital remains open on a “business as usual” basis, continuing to provide services to the community.

The building is owned by Australian Unity and was run by a group of healthcare professionals who had been looking for another private operator to take over.

EY has bee contacted for comment.

Originally published as Western Hospital set to survive ‘challenging period’ as EY Australia identifies six possible buyers