‘Distressing and uncertain’: Healthscope to close Ivanhoe rehab centre

Healthscope has announced the closure of another facility, with the North Eastern Rehabilitation Centre in Ivanhoe set to shut — fuelling more concerns over the stability of the nation’s private healthcare sector.

One of the nation’s largest private hospital operators, Healthscope, has shut down another location, continuing the trend of private hospital closures across the nation.

Healthscope this week announced their decision to close down the North Eastern Rehabilitation Centre in Ivanhoe.

The major private health provider outlined the “hard decision” in ceasing operations at the 46 bed rehab facility on April 17, citing decreased “activity and demand”.

The centre is currently one of 36 facilities around the nation managed by Healthscope

The Australian Nursing and Midwifery Federation said the “news has come as a shock to our members”.

Secretary of the federation’s Victorian branch Lisa Fitzpatrick said current conditions in the private health sector were “distressing and uncertain”.

Healthscope’s decision to close the rehab centre comes after the operator’s recent call to also close down maternity services at hospitals in Darwin and Hobart.

Healthscope’s decision to close the rehab centre comes after the operator’s recent call to also close down maternity services at hospitals in Darwin and Hobart.

These recent closures have sparked concerns regarding the stability of Australia’s private healthcare sector and have caused fears that Healthscope may be forced to make more cuts.

Australian Medical Association president Dr Danielle McMullen indicated that Healthscope’s recent moves should ring alarm bells regarding the long term viability of the private health system and renewed calls for industry wide reforms to the system.

Australian Nursing and Midwifery Federation secretary Lisa Fitzpatrick says the ‘news has come as a shock to our members’. Picture: Ian Currie

Secretary Lisa Fitzpatrick said it was “time that the federal government stepped in” in order to ensure the private health system “continues to treat and care for hundreds of thousands of Australians across the country each and every day”.

Healthscope’s decision comes during a period of financial stress for Healthscope, currently operating with $1.6 billion in debt.

Last year Brookfield, the private equity enterprise which acquired Healthscope in 2019, injected tens of millions of dollars into Healthscope in order to provide additional time to negotiate its debt.

This funding was on top of the $250 million in equity contributions made by Brookfield to Healthscope since the pandemic.

Originally published as ‘Distressing and uncertain’: Healthscope to close Ivanhoe rehab centre