$4.5 billion Northern Beaches Hospital takeover a step closer

A Canadian investment firm is a step closer to a $4.5 billion takeover of Healthscope, the private company that runs the Northern Beaches Hospital — and there are concerns over what impact it will have on jobs at the facility.

A firm is a step closer to taking over Healthscope, who operate the Northern Beaches Hospital. Picture: Adam Yip / Manly Daily

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A Canadian investment firm is a step closer to a $4.5 billion takeover of Healthscope, the private company that runs the Northern Beaches Hospital.

Healthscope expects a binding takeover proposal from Brookfield Asset Management — which boasts investments in India and China, as well as real estate and a coal exporting port in Australia — by the end of the month.

One of the private rooms at the Northern Beaches Hospital. Picture: Adam Yip / Manly Daily

Healthscope’s shares have risen 15 per cent in the two months since it announced Brookfield’s proposal.

It said Brookfield had indicated it was finalising its due diligence and debt commitments with a view to submitting a fully-financed, binding offer by January 31.

Healthscope has more than 40 private hospitals in its portfolio, including the new $600m private and public hospital at Frenchs Forest, which opened at the end of October.

Brett Holmes General Secretary of the NSW Nurses and Midwives’ Association.

Brett Holmes General Secretary of the NSW Nurses and Midwives’ Association said a takeover by a private equity group such as Brookfield would be about maximising long term profit, through restructure and job losses.

It would also reduce transparency.

“They have to make a return for their investors,” Mr Holmes said.

“They have to make efficiencies and so ultimately in historical terms it means restructures and a loss of jobs.

“That will be very difficult in the case of the Northern Beaches Hospital as there are certain contract requirements. That will certainly be tested.”

Mr Holmes said while the State Government had a strict contract with Healthscope, it had no control over who it will end up dealing with if there is a takeover.

“This is a good lesson of why privatisation of public services like health is fraught with danger and why 50 per cent of the ventures fail.”

The Northern Beaches Hospital may be set to be taken over. Picture: Craig Willoughby.

He said if Healthscope was to be bought out the union would prefer it was by an Australian company, with taxes from profits paid here, rather than a foreign investor.

He said in terms of the union members if a takeover happens it would be business as usual, although nurses and midwives were far from happy about the current working conditions at Northern Beaches Hospital.

“Unfortunately, in our opinion it has not yet met our expectations,” Mr Holmes said.

“Healthscope is still in a recruitment phase - there are far too many vacancies they are trying to recruit for.

“Our members are doing substantial overtime and missing meal breaks.

“They are doing their best to provide services in extremely difficult circumstances.”

One of the double rooms at the Northern Beaches Hospital. Picture: Adam Yip / Manly Daily

He said the recruitment process was one the union had been attempting to discuss with the State Government and Healthscope for years and that they were “seeing the impact of that now”.

He said many skilled staff from Manly or Mona Vale hospitals who could have worked for Northern Beaches Hospital had sought work elsewhere when they hadn’t had the reassurances they were after.

Mr Holmes also added that it was hard to recruit when there was no affordable housing available nearby and that it was disappointing proposals to build affordable housing had been knocked back.

“It’s amazing that there is a ‘not in my backyard approach’ to this hospital,” he said.

“It is not exactly an area where a person on a nurse’s wage can move in, as there is no affordable housing.”

Last week Healthscope said it “ensures staffing levels meet patient demand and expectations and that overtime is sometimes required to cover short notice leave including sick leave”.

A spokesperson for Northern Sydney Local Health District said: “The provision of health care to the northern beaches community would be unaffected by any change in Healthscope ownership.”

On Wednesday afternoon a spokesman for Healthscope said: “At Northern Beaches Hospital it is business as usual. We are committed to supporting the Northern Beaches community.”

“Healthscope has a 20-year contract with the NSW government to operate NBH.”