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Why Has Healthscope Entered Receivership?

  • Healthscope, Australia's second-largest private hospital operator with 37 hospitals, entered receivership on Monday after its lenders withdrew support.
  • The receivership followed financial strains as Brookfield, Healthscope's Canadian-American owner, faced $1.6 billion in debt and rising costs that outpaced revenue.
  • Healthscope treats about 650,000 Australians annually, employs 19,000 staff, and will keep all hospitals open while Commonwealth Bank and Westpac provide additional funding.
  • Federal Health Minister Mark Butler emphasized no taxpayer bailout, and Professor Anthony Scott described the collapse as a warning that private hospitals may need to shrink.
  • The receivership initiates an orderly sale process aiming to maintain patient care and staff employment, while raising concerns over the long-term sustainability of private hospital funding.
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manlyobserver.com.au broke the news in on Monday, May 26, 2025.
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