Private hospital giant Healthscope has collapsed into receivership, leaving Tasmania’s Health Minister scrambling to find alternative healthcare options for thousands of patients who rely on the company’s services.
Corporate restructuring firm McGrathNicol has been appointed as receiver for the troubled operator, which runs 37 hospitals across Australia and employs around 19,000 staff.
While the parent companies are now under financial administration, Healthscope says its hospitals – including Hobart Private Hospital – are still operating as normal.
The Commonwealth Bank has thrown a $100 million lifeline to keep the hospitals open while receivers hunt for buyers, but the uncertainty has prompted urgent action from state governments.
Tasmanian Health Minister Jacquie Petrusma said the state is closely monitoring the situation and already working on backup plans.
“Our number one priority is ensuring Tasmanians have access to the health supports and services they need, including through the private system,” Petrusma said.
“In the event Healthscope cannot provide private services, the Department of Health has already been exploring a number of options to ensure Tasmanians continue to have access to private healthcare, including discussions with other private providers.”
Petrusma called on Healthscope to provide the community with clear, detailed updates about what is going on “as soon as possible”.
Healthscope has reassured patients that all 37 hospitals will keep running during the receivership process. But its financial troubles have been brewing for months, with growing concerns over mounting debts.
Petrusma also urged the federal government to step up with financial support, not just for Tasmania but across the country.
“Should Healthscope exit the market, it is our expectation that the federal government will assist with any financial support that may be required, with discussions already occurring to ensure continuity of services,” she said.
“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.”
The collapse threatens to shake up a significant chunk of Australia’s private healthcare capacity, with potential knock-on effects across the entire health system if services are disrupted.
Independent Tasmanian MP Andrew Wilkie this morning warned that the state’s public health system “would collapse” if Hobart Private Hospital went under.
