Healthscope Hospital Network Split Among Four Operators After Receivership

Australia's second-largest private hospital operator will be divided among a consortium, after it went into receivership last year.

Under the deal, 25 hospitals and Healthscope's centralised service platform will be divided among four hospital operators.

Healthscope went into receivership in May last year after its North American private equity owner Brookfield withdrew its support.

Australia's second-largest private hospital operator Healthscope will be split up, in a deal announced by the company's receivers following its financial collapse last year.

Under the deal, 25 hospitals and Healthscope's centralised service platform will be divided between a consortium of four hospital operators — with not-for-profit operator Calvary Health Care taking over 14 hospitals and the rest being split between Healthe Care, ACURIO Health and KnG Group.

Sydney's Prince of Wales Hospital and Knox Private Hospital in Melbourne are among those being acquired by Healthe Care, an operator backed by private equity firm Pacific Equity Partners.

Healthscope went into receivership in May last year after its North American private equity owner Brookfield withdrew its support.

Other Healthscope hospitals have since been sold, and the New South Wales government resumed control of Sydney's Northern Beaches Hospital, which Healthscope had been operating under a public-private partnership.

Receivers say deal provides certainty

The receivers, McGrath Nichols, said lenders agreed to the deal after the new owners promised continuity and strong job protections for Healthscope's 14,000 frontline staff.

Keith Crawford from McGrath Nichols said the deal would also provide certainty to half a million patients who use Healthscope's services.

"Today's announcement delivers on our commitments on continuity of hospital services and protecting jobs in the interests of patients, employees and the Australian community. The continued operation of Healthscope hospitals across Australia also avoids placing additional pressure on Australia's public hospital system," Mr Crawford said.

Calvary Health Care chief executive Damien Bruce, speaking on behalf of the consortium, said staff had shown dedication and resilience during a difficult time.

"This is an example of what can be achieved when organisations work beyond individual interests and focus on the long-term needs of patients, communities and the health system as a whole," Mr Bruce said.

"Together, we have an opportunity not only to grow, but to build a stronger, more sustainable future for healthcare that continues to put people at the centre."