Media Release

Australians with private health insurance have been assured that it’s ‘business as usual’ for the nation’s second-largest private hospital operator, Healthscope, despite the private hospital group’s parent entities confirming they’ve entered receivership

The Commonwealth Bank has confirmed it will provide a $100 million funding package to bolster operations – adding to the group’s current $110 million cash balance.¹https://healthscope.com.au/news-media/Receivers-appointed-to-Healthscope-parent-companies

What Healthscope have said

Healthscope’s CEO, Tino La Spina, confirmed that all Healthscope’s hospitals would continue to operate as usual, as McGrathNicol Restructuring has been appointed to sell the business.

“All 37 of our hospitals continue to operate as normal and today’s appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients,” Mr La Spina said in a statement.²https://healthscope.com.au/news-media/Receivers-appointed-to-Healthscope-parent-companies

“There is no interruption to the outstanding care we provide. Our incredible teams are all
working as normal, providing the high standard of care they always have. The additional
funding, while we do not anticipate it being required, provides additional support.

“The receivers and management share the same goal of maintaining our market leading
standards of patient care and protecting the business, the hospitals and our amazing
people.”

What does it mean for Australians who could be impacted?

iSelect’s Sophie Ryan said customers with health insurers that have current agreements with Healthscope hospitals shouldn’t notice disruptions to their healthcare.

“Rest assured, Healthscope has confirmed that its hospitals will remain open and operate without impacting doctors or patient care,” Ms Ryan said.

“All booked procedures will proceed as planned, and the company is working to ensure a smooth transition to new ownership for its hospitals.

“The federal government has also confirmed that it has been meeting regularly with Healthscope and expects that the hospital group, its lenders, and landlords will work together to deliver the least disruptive outcome for patients and the broader health system.”

Ms Ryan also said there should be no immediate impacts to your health insurance due to Healthscope’s current issues.

“Your policy stays fully active and treatments at Healthscope hospitals remain covered as before,” Ms Ryan said. “No immediate changes to patient fees or gaps are planned. If anything does change, Healthscope and your insurer will notify you in advance.

“However, reviewing your coverage and provider is always a good idea to ensure your policy still suits your needs and budget.”

Healthscope saga explained

It’s the latest in an ongoing saga for Healthscope, who previously made headlines after threatening to tear up its contract with health insurance provider Bupa over funding issues, as well as 22 other smaller not-for-provide funds which make up the Australian Health Service Alliance (AHSA).³https://www.ombudsman.gov.au/__data/assets/pdf_file/0028/315847/Media-Release-Bupa-and-Healthscope-Negotiations.pdf & https://ahsa.au/news-and-insights/healthscope-advises-of-intent-to-terminate-with-ahsa-funds/

Healthscope and Bupa later announced a two-year in-principle agreement in January, which allows Bupa customers to continue receiving care at Healthscope hospitals without additional out-of-pocket expenses. AHSA also reached an agreement with Healthscope in March.⁴https://media.bupa.com.au/bupa-and-healthscope-reach-a-new-agreement/ & https://ahsa.au/news-and-insights/ahsa-and-healthscope-reach-in-principle-agreement/

Despite the worrying spotlight on the future of the country’s private healthcare sector, Minister for Health and Ageing Mark Butler said Aussie patients would be at the forefront of any future decisions.

“The government expects all parties to continue to put patient care and workers as their priority. We expect that these hospitals remain a critical part of our healthcare system,” Mr Butler said in a statement.⁵5https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/statement-from-minister-butler-healthscope?language=en

“The government does not want any of these important assets to be put in jeopardy to satisfy international investors.”

While Healthscope is a major provider of private hospitals in Australia, you may be able to find alternative facilities nearby. The exception is Darwin Private Hospital, which is operated by Healthscope and is the only private facility in the Northern Territory.

Directory of alternative private hospitals