Brookfield makes sweeping changes at the top of Healthscope

Healthscope is the country’s second largest hospital operator. Picture: iStock

Sweeping changes are being made by Brookfield to the top ranks of Healthscope, its embattled private hospital operator that could soon end up in the hands of its lenders.

An internal note was sent to staff saying chief executive Greg Horan would step down from the private equity-owned health provider, to be replaced by ex-Qantas boss and Boral executive Tino La Spina, the company’s recently appointed interim deputy chief.

Meanwhile, long time Brookfield executive Len Chersky, who chairs the business, would be replaced as chair by existing Healthscope director Sophia Rihani.

The changes mirror what happened at fellow healthcare operator GenesisCare just months before it declared Chapter 11 bankruptcy, where Dan Collins, the founder and managing director, departed and was replaced by the company’s chief operating officer Shaden Marzouk.

The chairman Brian McNamee, the former CSL chairman, had left also before the collapse.

Incidentally, Mr La Spina was a financial adviser to GenesisCare during its financial restructuring.

Mr Horan took the top job at Healthscope after the global pandemic, replacing Steve Rubic in 2022.

The movements come as Healthscope’s future hangs in the balance, what with rising debt and operating costs.

It has a large syndicate of lenders owed $1.6bn and the group is expected to breach its banking terms in the coming weeks.

DataRoom revealed that landlords, including the HMC Capital-related interests of David Di Pilla, are working to bring together a consortium for a buyout of the business.

The consortium also includes health insurer Bupa.

Bain Capital is also showing interest in buying the company’s equity or debt and may be part of those talks.

Brookfield purchased Healthscope for $4.4bn in 2019, fending off competition from BGH Capital, and then sold its real estate sites to two separate groups to help pay for the deal.

However, the understanding is that Brookfield has conceded that there is no longer any equity in the business and is now prepared to take a pragmatic approached to ensuring it has a sustainable future.