Health Minister Jacquie Petrusma says government will work with Healthscope administrators

Despite its owners being placed in receivership, the Hobart Private Hospital will stay open. But an independent MP is worried about its future.

Hobart Private Hospital sign

The state government says the Hobart Private will continue operating after an independent MP warned its closure would see the collapse of the hospital system in the south and “people will die”.

Healthscope, the owner of the Hobart Private, was placed into liquidation on Monday with debts of $1.4bn.

Earlier yesterday Health Minister Jacquie Petrusma said the government was “working on contingencies” to ensure people had access to private healthcare.

However, she issued a statement later saying the government had been formally advised that Healthscope had entered receivership, and that receivers and administrators had been appointed.

“Pleasingly it is the intent of the receivers and administrators to continue with the operation of the Hobart Private Hospital, including the orderly and planned transition of maternity services to Calvary Health Care,” Ms Petrusma said.

Minister Jacquie Petrusma. Picture: Nikki Davis-Jones

“We welcome this outcome and will continue to work closely with the administrators over the coming months.”

Hobart Private announced this year it would end its maternity services, with about 600 babies delivered every year, in August.

The federal member for Clark, Andrew Wilkie, who warned of the financial woes of Healthscope and possible ramifications for the Hobart Private in February said the news was “chilling” and “should alarm us all”.

He said Healthscope had not ruled out hospital closures and it was “no secret” Hobart Private was one of its underperforming hospitals.

“When this was raised months ago, they (government) didn’t bat an eyelid, they just dismissed it as unwarranted concerns,” Mr Wilkie said.

“With thousands on the public hospital waiting list, if we Iose the Hobart Private, the hospital system in southern Tasmania will collapse.

“It’s already so fragile. Imagine losing more than 100 beds like that. The system will collapse and people will die.”

Andrew Wilkie, Independent MP. Picture: NewsWire / Martin Ollman

Mr Wilkie said the community needed to know if the Tasmanian government would roll the Hobart Private back into the public hospital system where it used to be.

“The community needs answers, and it needs them right now.”

Ms Petrusma said the federal government needed to ensure support for private hospitals.

She said if Healthscope “exit the market”, she expected the federal government would provide financial support to ensure services continued.

“My Department has already been in discussions with the Federal Department and other states and territories, noting if Healthscope secures financial guarantees from major banks, this will allow time for all governments to work with an administrator to stabilise the situation and ensure continuity of care and services.”

Greens health spokeswoman Cecily Rosol said the 150 beds at Hobart Private played a massive role in the Tasmanian health system.

“The facility has also supported significant expansion in elective surgery delivery in recent years,” she said.

“If the hospital closes, these beds and this capacity will be lost.

“The consequences will be dire – not just for Hobart, but for statewide health services.”