TROUBLED private hospital company Healthscope has been handed a lifeline by the Commonwealth Bank and Westpac to the tune of $100 million to keep it running as it looks for a new owner.
The company, which owns 37 hospitals, is $1.6 billion in debt and announced yesterday it has entered administration, raising concerns about outcomes for patients, its 19,000 staff and the broader health system.
"While Healthscope have announced they will remain operating as normal with no change to patient care or staffing, this will still be difficult for the hospital's employees, and their patients," acknowledged Health Minister Mark Butler.
However, the government has ruled out a taxpayer bailout of the company, and has also indicated it would prefer the assets were not held by international private equity firms.
The Australian Medical Association (AMA) has welcomed commitments that the operation of Healthscope's hospitals will continue as normal and that additional funding has been provided by the banks to support their operation.
"We also welcome the receiver's stated intention to transition all hospitals to new ownership, with no plans for hospital closures or redundancies," said AMA President Dr Danielle McMillan.
"The constant speculation in the media about the future of Healthscope has fuelled significant uncertainty, but the details of [the] announcement show a clear commitment to the continued operations of the Healthscope hospitals, and patients can continue to schedule their procedures and other treatments with confidence.
"This is good news for patients, as well as the doctors, health professionals and staff working in Healthscope hospitals." KB
The above article was sent to subscribers in Pharmacy Daily's issue from 27 May 25
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 27 May 25
