AMA’s newest NT president speaks to what Darwin needs amid Healthscope collapse

Dr John Zorbas, who was appointed AMA’s NT president last week, said the Top End’s situation was vulnerable but could succeed if Healthscope was held accountable.

New AMA NT President, Dr John Zorbas.

Following Healthscope’s decline into administration on Monday, many people are asking what it means for their 37 hospitals.

Particularly Australia’s most isolated and the NT’s only private hospital in Darwin.

Uncertainty around Healthscope’s future has been building for the past few months amid news of its financial woes.

After the company, with $1.4 billion in debt, was placed into the hands of its lenders by previous owner Brookfield, the banks and hedge funds that control Healthscope’s loans placed it into receivership.

Healthscope has since assured staff and hospital users its facilities will remain open and operating as usual and a loan of $100 million had been given to McGrathNicol to oversee the sale of the business to help ensure this.

But questions around what this looks like and how long it will last are being raised.

‘Healthscope needs to work closely with NT Government and be held accountable’

The Australian Medical Association (AMA) has been monitoring the situation for months and has been liaising with the federal minister’s office and the Department of Health, Disability and Aged Care.

Newly appointed AMA NT president, Dr John Zorbas, said although the news was not surprising, it was concerning.

Darwin Private Hospital is operated by Healthscope. Picture: DPH

“We’re glad to see the reassurances they’re able to cover operational costs in the meantime, but what we need clarified is, for how long, and what does an orderly transition to a new operator look like?” Dr Zorbas said.

“Healthscope need to be honest about their future. It’s fine to say it’s business as usual for now, but we can’t pretend it’s business as usual when you’re in receivership.

“There’s a future in Darwin with a private hospital. We just need Healthscope to work closely with prospective buyers and the government to make sure that that can happen.”

As Healthscope is in communication with the NT Government, Dr Zorbas said AMA would like to see the government hold Healthscope to its word.

Healthscope going into administration ‘another blow’ for Top End staff

With Darwin Private Hospital the only private facility in the Territory and other public hospitals already experiencing strain on services, the health situation is unique compared to many other Australian cities.

Especially as the collapse into receivership immediately follows the pending closure of the hospital’s private maternity ward.

When asked about Darwin staff morale, Dr Zorbas said the collapse of Healthscope was “another blow” and had added to uncertainty.

New AMA NT President, Dr John Zorbas.

“We are particularly vulnerable in that we have specialists who work in private and public, who we risk losing if we don’t have a functional private hospital in Darwin,” he said.

“And that’s going to hurt Royal Darwin Hospital and the wider NT significantly.

“We know a private hospital can work in Darwin.

“I think for us it’s going to be about capacity and protecting the public system.

“If there’s any diversion of work away from the private then there’s not a lot of capacity in the public system to take that up. And we don’t want to see uncertainty for patients in the NT.

“We want them to know what service they’re getting from Healthscope and when they’re getting it. We don’t want to see delays and cancellations when they’ve promised that they’ve got the money to continue operations.

“We do think that health care needs to be a bigger priority for the government.

“If we’re rebuilding or protecting lifestyle in the NT is a priority for them, then functional health care, both private and public, is a huge component of that.”

Governments urged to think carefully about Australia’s health system

AMA president, Dr Danielle McMullen, said the clear commitment to continue normal operations in hospitals was good news for patients and staff.

She added AMA expected the government to play a strong role in helping ensure the ongoing process went well and hospital operations continued as normal.

Australian Medical Association (AMA) president Dr Danielle McMullen Picture: Richard Walker

“We also welcome the commitment by the receivers to engage constructively with all key stakeholders,” Dr McMullen said.

“The AMA is ready to work with the receivers as part of ensuring the uninterrupted operation of Healthscope hospitals.

“Private health is an essential part of Australia’s healthcare system and the situation that has emerged with respect to Healthscope further reinforces the need to adopt the AMA’s proposal for an independent Private Health System Authority giving much better oversight of the sector.”

Some argue the Healthscope saga should prompt governments to think carefully about the future of Australia’s health system and how public health care is funded and delivered.

Chief executive of the Australian Healthcare and Hospitals Association Limited, Tony Farley, said delivering high-quality services required open and honest conversations.

“The standards expected of public hospitals should be applied in any setting and by anyone providing public health care, regardless of whether they are public or privately owned and run,”Mr Farley said.

“A modern health care system needs to be integrated, seamless and enable local flexibility while maintaining national consistency to deliver the standard of care that people and communities deserve.

“Any future service provision planning needs to learn the lessons of the past and include the health care professionals of today in the planning of that future.”

He said AHHA Ltd recognised the importance of Australia’s blending of public and private healthcare and this needed to be supported and nurtured.

“It’s tough to run an endlessly stretched public hospital and health system, and while neither is perfect, the future of Australian health care depends on renewal and innovation that involves both public and private providers having a voice in its future.”

Originally published as AMA’s newest NT president speaks to what Darwin needs amid Healthscope collapse