Healthscope moves to cut Northern Beaches Hospital ties

Northern Beaches Hospital currently runs as a public-private partnership with the NSW government. Picture: Max Mason-Hubers, NewsWire

Healthscope has confirmed it wants to discuss handing back the keys of the Northern Beaches Hospital to the NSW government.

It comes amid speculation in the market the Brookfield-owned private hospital operator wanted to distance itself from the project, as earlier flagged by this column, at a time it is buckling under debt and its future remains hanging in the balance.

The hospital currently operates as a public-private partnership with the NSW government, but the arrangement, set to run until 2038, is understood to have been plagued with challenges. The NSW government has recently introduced a policy preventing the further use of PPPs in the health sector.

“Healthscope acknowledges that NBH continuing to operate as a PPP is no longer compatible with the government’s objectives,” Healthscope said in a statement.

It defended its performance, saying under its direction the hospital had achieved national accreditation standards, and regularly performed above peer hospitals on a range of key performance measures.

“We believe it is best for the patients, staff and the Northern Beaches community that it is returned to NSW Health, if that is the government’s preferred outcome,” Healthscope chief executive Tino La Spina said.

“The public pressure brought about by the change in policy re PPP structures has created uncertainty about the NBH future and this has put strain on NBH’s people and operations,” he said.

“In the current circumstances, we believe NBH will operate more effectively as part of the public hospital system and its future is assured.”