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NSW to Gain Authority to End Healthscope’s Northern Beaches Hospital Contract

Legislative amendments follow the appointment of receivers at Healthscope’s parent company to enable ministers to trigger default termination with an independent arbiter to set any compensation.

Receivers were appointed to Northern Beaches Hospital operator Healthscope’s parent entities in May. NewsWire / Max Mason-Hubers
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Overview

  • NSW Treasurer Daniel Mookhey said the government will next week introduce amendments to classify receivership at Healthscope’s parent company as a contract default and trigger termination powers.
  • The changes will allow Health Minister Ryan Park to issue a termination notice if exit talks fail and require an independent arbiter to determine compensation within set timeframes.
  • Trilateral negotiations between Healthscope, its receivers, and the Northern Beaches Hospital Taskforce are ongoing ahead of a potential voluntary exit.
  • The government aims to limit compensation payouts that could run into hundreds of millions of dollars after patient care concerns, including two child deaths, led to a ban on future acute care PPPs.
  • Healthscope operates 37 Australian facilities and faces a $1.6 billion debt crisis, with banks extending a $100 million lifeline as the company’s future ownership remains undecided.