Healthscope boss Steven Rubic out after three years in top job

Steven Rubic will hand over the reins as managing director of Brookfield, the alternative asset manager which acquired the company in 2019.

Healthscope boss Steven Rubic is exiting the top office at the private equity controlled private hospital operator. Picture: Carla Gottgens/Bloomberg

Healthscope boss Steven Rubic is exiting the top office at the private equity controlled private hospital operator after more than three years in the job.

Having steered the group, now owned by Canadian private equity giant Brookfield, since mid-2019, Rubic told staff at lunchtime today he was stepping aside.

From Monday the business will be led by Brookfield managing director Greg Horan. “It is after much souls searching and with a great deal of sadness that I am writing to let you know I am stepping down as CEO,” Mr Rubic wrote in his all staff memo.

The news comes amid reports that a consultant has been engaged to review ways to cut costs at the business, which is Australia’s second biggest private hospital operator, and boost earnings. Staff reductions and redeployments are already underway.

“As Healthscope emerges from the. Pandemic and the organisational changes draw to a close, I feel that now represents a natural transition point,” Mr Rubic said.

He described the past three years at the helm as tough and challenging. He will remain with the group for a month-long hand over to Mr Horan and will then join the Healthscope board as a director.

The Canadian alternative asset manager has already divested several major Healthscope assets as it reengineers the operations.

Staff were notified via email at noon today, with Margin Call obtaining a copy of the surprise announcement.

It is understood that Horan has spent at least the past six months in the healthcare operations and is already a director of the company. He was also a key part of the team that drove the 2019 buyout, which cost $4.4bn.

News of Rubic’s exit follows the slow demise of KKR’s planned deal to buy Ramsay Healthcare, with Healthscope seen by some as an alternative deal possibility for KKR in the sector as it now looks elsewhere for opportunities.