Western Hospital sold and saved with new 20-year lease

A popular western suburbs hospital has been saved in a deal that includes a $3m government grant – in return for helping to cut public hospital elective surgery queues.

Western Hospital has been sold and saved, helped by a $3m state government grant and a deal to fast track public elective surgery patients.

Health giant Amplar Health, owned by Medibank Group, has teamed up with a consortium of doctors known as Seabreeze Healthcare to acquire the hospital, following negotiations with the administrator, Ernst & Young and the government.

The new owners have signed a 20-year lease with site owners Australian Unity, after it was sold for an undisclosed price.

The 54-bed private hospital at Henley Beach opened in 1974 providing surgical and medical care services to residents in Adelaide’s west.

However, it ran at a loss for several years, going into voluntary administration in January amid fears it would fold. Its Oncology Day Clinic closed after a separate proposed sale fell through.

One of the oncology patients was Kellie Finlayson, wife to AFL star Jeremy Finlayson, who was diagnosed with stage four bowel cancer and had been seeking treatment at the clinicOn learning of its closure, she said: “It’s like a little family, which is so weird to think that I’ve got that connection with medical staff,” she told 7News.

“Seeing as they’re now without jobs, I’m just shook.“I feel like I don’t want to repeat myself with a new oncologist, who I might not even get along with.”

Western Hospital on Cudmore Terrace, Henley Beach has been sold. Picture: Brett Hartwig

The government has agreed the hospital will undertake nearly 4000 elective surgery cases from the public health system over the next three years, boosting its workload while taking pressure off public hospitals.

As of Thursday there were 22,064 patients on the public elective list ready for surgery including 4578 listed as overdue.

The hospital will operate as Western Adelaide Private Hospital, providing short stay clinical care with a focus on orthopaedics, ophthalmology, general surgery, gastroenterology and other procedures.

The government will provide a $3m grant over two years to support changes to clinical services and patient care models, as part of a broader package of investment from Australian Unity, along with Medibank and doctors, to ensure the hospital’s long-term viability.

Imaging services will continue to be offered by Benson Radiology and Australian Unity is working with GPs to maintain their services.

Western Hospital has a new 20-year lease. Picture: Brett Hartwig

Treasurer Stephen Mullighan said: “Today is a great day for the western suburbs, with Western Hospital to continue to operate in Henley Beach.

“It is not only good news for people in the western suburbs, but the ongoing operation of the hospital will also help ease the pressure on our public hospital system.”

Health Minister Chris Picton noted SA Health already works closely with Amplar and Medibank on delivery of home hospital services.

“This is excellent news for private patients in the western suburbs who will be able to receive surgery at their local hospital,” he said.

“Importantly we will also be working with the hospital to use its spare capacity to help reduce public surgery waiting lists.”

Medibank Group’s Robert Read said a stronger Western will ensure the community can access innovative care models, in hospital and while they recover at home where clinically appropriate.

Robyn Duggan from Ernst & Young said the sale will ensure the uninterrupted operation of the hospital and the continued employment of 190 staff.

Originally published as Western Hospital sold and saved with new 20-year lease