Patients reassured as hospitals firm Healthscope collapses

The federal government is vowing to protect patient care after the second largest private hospital operator in Australia entered into receivership.

Patients are being assured it is business as usual inside Healthscope hospitals. Picture: iStock

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Patients of Healthscope hospitals have been assured they will receive the same level of care despite the group’s parent entities being placed into receivership, as the nursing union declared the collapse should serve as a warning that “Americanised healthcare” does not work in Australia.

The Australian Nursing and Midwifery Federation said it was extremely concerned by the receivership announcement but was buoyed to hear Healthscope has received funding to keep its hospitals operational.

“We have requested urgent briefings with the Receiver and with Healthscope Management and have been assured meetings will be arranged as a matter of priority,” said federation federal secretary Annie Butler.

“The financial collapse of Healthscope is a shocking reminder about the dangers of privatising healthcare services and that Americanised health care does not work in Australia. We will also be urging the government to review the types of companies they allow to participate in the delivery of health services.

“We can’t allow profits to be put before patient care. All Australians deserve access to timely, quality healthcare, which is what we get under Medicare.”

Healthscope chief executive Tino La Spina said the hospital operator was focused on patients, adding there were no plans for any hospital closures or redundancies. “There is no interruption to the outstanding care we provide,” Mr La Spina said.

The Albanese government sought to assure patients, including pregnant women preparing to give birth, that it was business as usual at the hospitals. Health minister Mark Butler said: “This news will be highly distressing to the patients, staff and local communities that depend on Healthscope’s services. I sought an assurance from (Mr La Spina) that the thousands of Australians who right now have a birth planned or a knee reconstruction booked at a Healthscope hospital can be confident that procedure will go ahead, as planned and as booked.

“I received that assurance from the Healthscope CEO, and I have to say, I will be holding the company and the receivers and administrators to that commitment given to me and given to Australian patients and staff.”

Mr Butler declared there would not be a government bailout despite acknowledging the private hospital system was facing viability challenges. He warned that a disorderly sale process “would have an impact on public hospitals”.

“About 70 per cent of elective surgery is undertaken in private hospitals and this is the second biggest private hospital company in the country … That is why we have been so determined … to make sure if there is a sale of Healthscope hospitals … it is undertaken in an orderly, stable, way that protects the operations of those hospitals.”

Healthscope has 37 hospitals across all Australian states and territories, servicing about 650,000 patients each year. Last year, it was engaged in a bitter dispute with insurers Bupa and AHSA, after it ripped up their hospital agreements over contractual issues. That dispute was only resolved early this year.

In February Healthscope announced plans to end its maternity services in both Darwin and Hobart due to falling private birthrates and staff shortages.

Tasmania’s Health Minister, Jacquie Petrusma, called on the federal government to ensure support for private hospitals.