Image: Photo: DAN HIMBRECHTS/AAP
Healthscope has offered to return the public arm of Northern Beaches Hospital (NBH) to NSW Health, following months of community outrage over the hospital’s performance regarding the tragic death of two-year-old Joe Massa.
Healthscope CEO Tino La Spina confirmed on Thursday that the company is willing to walk away from its controversial public-private partnership (PPP) deal with the government.
“We believe it is best for the patients, staff and the northern beaches community that it is returned to NSW Health, if that is the government’s preferred outcome,” La Spina said.
Treasurer Daniel Mookhey said any deal would protect public funds.
“After the way Healthscope has managed this partnership, it should not expect to walk away from the Northern Beaches Hospital with a profit,” he said.
“The taxpayers of NSW would expect, firstly, that mismanagement of the hospital is not rewarded, and secondly, that public money isn’t being handed over to private equity as part of a ‘going out of business’ sale.”
NSW Health & Healthscope negotiations may take up to a year
Healthscope, which is owned by Brookfield Asset Management, will retain control of the hospital’s private services but has admitted the PPP model “did not have sufficient support to be successful in the long term.”
“In the current circumstances, we believe NBH will operate more effectively as part of the public hospital system and its future is assured,” La Spina said.
Healthscope is currently seven years into a 20-year contract. While Premier Chris Minns has previously announced a ban on new PPPs for acute care hospitals, the government has yet to confirm if the hospital will return to full public operation or when the transition might occur.
La Spina said negotiations could take up to a year and stressed that continuity of care remains a priority. “My focus is on making sure that we do the transition in a smart way that continues to provide continuity of excellent patient care,” he said.
Despite some media reports linking the move to financial pressures, La Spina denied Healthscope is seeking a windfall. “While there will be some puts and takes, I can assure you Healthscope will not seek a windfall gain,” he said.
Wakehurst MP Michael Regan praised the progress and urged residents to keep pushing for change.
“There is still a huge opportunity to have your voices heard,” he told media. “This progress wouldn’t be happening without the strength and determination of local families and community advocates who stood up and said: enough is enough.”
Health Minister Ryan Park confirmed that services at NBH will continue “without interruption” as discussions proceed.
The NSW Auditor-General’s independent review into Healthscope’s performance is expected to be released next week.
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