Healthscope breaks apart among four operators as lenders approve survival deal
Lenders are backing a deal to split Healthscope among four hospital operators. This avoids a full collapse.
Healthscope, Australia's second-largest private hospital operator, will be dismantled and sold to four separate operators. Lenders approved this deal this week.
Fourteen of the 25 remaining hospitals go to not-for-profit Calvary Health Care. Six hospitals go to private equity-backed Healthe Care.
These include Sydney's Prince of Wales Private Hospital and Melbourne's Knox Private Hospital. The rest go to Acurio and KnG.
The deal protects jobs for the group's 14,000 staff. It also ensures hospital services continue across the country.
Healthscope's financial collapse came last April. The company could not handle $1.7 billion in debt.
Private equity owner Brookfield also withdrew. The consortium is expected to complete the handover by the end of November.
- 2nd-largest private operator
- Healthscope rank
- 25
- Remaining hospitals
- 14,000
- Staff protected
- $1.7 billion
- Debt load
Why it mattersThe deal saves thousands of jobs. It prevents a complete hospital operator collapse. This would have put more pressure on Australia's public health system.
AustraliaAustralians using private hospitals in Healthscope facilities will stay under care, though their operator will change, and 14,000 healthcare workers keep their jobs.
Corroborated bysmh.com.au
✓ Claims checked against the source. checked 10 d ago
