This appeared a few days ago:
Healthscope in limbo for up to a year as administrators extend auction
Max Mason Senior courts and crime reporter
Jun 20, 2025 – 8.00pm
The country’s second-largest private hospital operator could be left in limbo for a year after administrators of the collapsed Healthscope business won approval to extend negotiations with prospective buyers for months.
The company, handed to lenders by asset management giant Brookfield earlier this year, was placed into receivership last month as it buckled under $1.6 billion in debt owed to a syndicate of dozens of hedge funds and banks.
The administration process has created fears among state governments that the 37-hospital portfolio could be split up, with some of the weaker operations closing down, adding to the strain on public health systems.
KordaMentha, Healthscope’s administrators, have now sought an extension of time from the Federal Court so that McGrathNicol can undertake “an orderly and considered sale process designed to maximise value for Healthscope’s creditors and benefit key stakeholders”.
Healthscope, with 5000 beds and 19,000 staff, declined to comment.
“The sale process is complex because the Healthscope group operates its 37 hospitals through various arrangements, including several leases,” KordaMentha wrote in its submission to the court.
“The receivers may be required to negotiate new rental terms with these landlords to facilitate any sale of the business … Operating the Healthscope group business also requires engagement with state regulatory bodies in relation to hospital licenses, engagement with its heavily unionised workforce of nurses with 23 separate enterprise bargaining agreements, and continual engagement with major private hospital insurers.”
KordaMentha said the sale process had already attracted interest from several bidders, and it would be completed within the year. The Federal Court this week agreed to extend the timeline for a deal to June 30 next year.
Healthscope is now run by former Qantas executive Tino La Spina. Last month, The Australian Financial Review revealed he had told staff and doctors in a frank exchange that Bupa, a major British health insurer interested in the business, would buy Healthscope “over my dead body”.
Healthscope and Bupa clashed last year after the British fund resisted pressure from Brookfield to increase how much it paid for its members’ care. Bupa has appointed advisers to look at the assets, the Financial Review’s Street Talk column has previously reported.
Healthscope has received 10 indicative offers from private hospital operators, including Ramsay Health Care.
Health Minister Mark Butler has ruled out a government bailout of Healthscope despite the risk that some of its hospitals could stop admitting patients if a buyer for the whole business cannot be found.
The Albanese government has also flagged that it would be less receptive to offshore private equity ownership than the previous Coalition government, which approved the 2019 sale of Healthscope to Brookfield.
Brookfield took on large amounts of debt to acquire Healthscope following a bidding war for the operator at a time when hospital valuations had soared. As part of the buyout, it sold 22 properties for $2.5 billion before leasing them back at rents it now says were well above market rates.
Healthscope also faces the loss of one of its largest facilities, Sydney’s Northern Beaches Hospital, in an escalating dispute with the NSW government.
“The government must be able to act decisively to avoid a prolonged dispute for members of the Northern Beaches community, staff working at the hospital and for NSW taxpayers,” NSW Treasurer Daniel Mookhey said.
Here is the link:
It is difficult to see that we will see this issue fixed soon – given the long -standing issues this hospital has and the issues with operating a hospital of this complexity.
It would be good if the State-Government took it over for a few years, got it up to scratch and then put back in the private sector when stabilized! Or they could just add it to the public hospital sector – which might not be a bad idea.
David.
1 comment:
Interesting David, other private hospital operators must also be in difficult waters, it is clear no money flows from the health funds, although they are happy to hock up my fees.
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