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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Private hospital giant Healthscope falls into receivership
Healthscope, one of Australia’s largest private hospital groups has collapsed. The company has 37 hospitals across the country and employs around 20,000 people. Its owner, Canadian private equity group Brookfield, has been struggling to pay back $1.6 billion to creditors.
·Sydney, Australia
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