A major private hospital operator has been passed into receivership, with creditors owed $1.6billion.
Healthscope’s parent companies were placed in receivership on Monday, with restructuring firm McGrathNicol’s appointed by the company’s lenders.
The Commonwealth Bank has provided an extra $100 million in funding to support ongoing operations while receivers look for potential buyers.
Healthscope said its hospital operations are not affected.
The company’s 37 hospitals will continue to run as normal, it assured.
Healthscope employees about 19,000 people in Australia.
It is understood McGrathNicol will transition the hospitals to new ownership, so as not to cause any closures, redundancies or disruptions.
Creditors voted to end their support for Healthscope’s current owner, Brookfield.
Brookfield has been unable to bankroll the operation of the company’s facilities, including the embattled Northern Beaches Hospital, Holmesglen Private Hospital, and Hobart Private Hospital.
The company employs about 19,000 in Australia (above, a stock of NSW Health nurses)
The operator manages 37 private hospitals, the chief executive said there would be ‘no interruption’ to care for patients
About 20 lenders, including the Commonwealth Bank and Westpac, are owed $1.6billion.
Healthscope’s chief executive Tino La Spina said Monday’s development will ensure there was ‘no interruption’ to care.
‘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.
‘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.’
Mr La Spina will remain in his role operating the business.
Brookfield acquired Healthscope in 2019 for $5.7billion.
The asset management company manages a portfolio worth more than $1trillion.
The company had struggled to sell the business and previously attempted to shell out control of the Healthscope to the dozens of parties crediting it.
Earlier in the year Healthscope struck a deal with creditors to delay payments on its billion-dollar debt, and struggled to make rent.
Shortly after Brookfield acquired the business in 2019, the COVID-19 pandemic forced the private hospitals to pause elective surgeries – the hospitals’ main business.
