Minns government seeks powers to end contract with Healthscope at Northern Beaches Hospital

The state government will seek powers to put the Northern Beaches Hospital into public hands if negotiations drag out with private operator Healthscope.

The state government will seek powers to put the Northern Beaches Hospital into public hands if negotiations drag out with private operator Healthscope, in a major step towards ending the controversial arrangement for good.

The government will introduce amendments to a bill next week which will give the Health Minister Ryan Park and Treasurer Daniel Mookhey the ability to break off the public-private partnership.

It comes after Healthscope’s parent companies entered receivership late last month when lenders withdrew support following widespread public criticism, sparked by the tragic death of two-year-old Joe Massa at the hospital last year.

Healthscope, its receivers and the government’s Northern Beaches Hospital Taskforce have been locked in “good faith” negotiations since mid-April to reach an agreement about the future control and operation of the facility.

But the proposed amendments will aim to safeguard the community and staff from talks drawing out – although the government has not provided a deadline for negotiations at this stage.

Health Minister Ryan Park (left) and Treasurer Daniel Mookhey. Picture: NewsWire/Nikki Short

The original bill, introduced by independent Wakehurst MP Michael Regan last month, sought to cut the contract and ensure Healthscope did not walk away from the hospital with a cent of taxpayer money.

The proposed amendments would give Mr Park the power to terminate the contract with Healthscope, and Mr Mookhey would have the power to ensure a separate round of compensation negotiations occurred in a “reasonable time frame” and potentially overseen by an independent figure.

The government is currently in negotiations with Healthscope. Picture: 60 Minutes

Under this plan, Healthscope would receive compensation but it would be a fraction of the hundreds of millions of dollars it could stand to earn from the break-up.

Mr Mookhey said the government was committed to continuing current negotiations and hoped an agreement could be reached.

However, he said the government could not afford a lengthy dispute while patients and staff were left in limbo.

“This is not a decision we take lightly,” he said.

“While an agreed exit from this failed contract remains my preference – I must ensure the

government has the right to step in and protect the Northern Beaches community from this

dragging on.”

Elouise and Danny Massa, holding the shoes of their two-year-old son Joe, who tragically died at Northern Beaches Hospital. Picture: Jonathan Ng

Mr Park said the amendments would aim to help rid NSW of public-private partnerships once and for all after the parliament passed Joe’s Law earlier this month, banning future partnership arrangements for acute hospital services.

“We’ve made it clear from the very beginning that we don’t support this sort of arrangement,” Mr Park said.

“This is a complex contract but the community deserves certainty.

“The other mob (former Liberal governments) may have created this mess, but we are going to be the ones to clean it up.”

Mr Regan said he was “ready and eager” to work with the government to get the bill though parliament “as soon as possible”.

“The Northern Beaches community has been left in limbo for too long,” he said.

“The uncertainty about the future of the hospital has to end. This bill provides a pathway to a timely resolution.”

Originally published as Minns government seeks powers to end contract with Healthscope at Northern Beaches Hospital