There is still a long way to go, as the embattled hospital operator enters negotiations with the government to discuss the fine print on how it will work.
Northern Beaches GP and federal Mackellar MP Dr Sophie Scamps has welcomed news that the public Northern Beaches Hospital is a step closer to being handed back to the state government by private operator Healthscope.
Dr Scamps has been calling out long-term systemic operational problems affecting staff and patients at NBH throughout her parliamentary term and in February called for the hospital to be bought back by the NSW government.
She said a successful handback would end the only remaining public private partnership in NSW “that is not meeting the needs of our community”.
Dr Scamps said Healthscope has cited that public pressure brought about the operator’s belief that NBH would operate more effectively as part of the public hospital system.
“Healthscope’s decision to offer the hospital back to the state government is proof that the operator no longer has the desire, nor the ability to continue running our only major hospital on the Northern Beaches,” said Dr Scamps.
“The state government has an urgent duty of care to act and reassure our community and the staff at Northern Beaches Hospital that they are in safe hands and take the necessary steps to acquire the public hospital.
Dr Scamps said: “Healthscope has admitted that it’s better for patients, the staff and our community, if the Northern Beaches Hospital is handed back to the state government.
“There’s a long way to go, but this is an absolutely critical step,” she said.
“Public hospitals must be publicly run to serve our community and support our hardworking health staff, not to make profits for corporations.
“I will continue to work with both the state and federal governments on the next steps to return Northern Beaches Hospital to public hands and deliver the high-quality public hospital services the community deserves.
“As an Independent, I will never stop fighting for what is right for my community.”
Healthscope yesterday confirmed it has approached the government to begin talks about returning the hospital to the NSW public system.
It came just weeks after the government introduced policy banning any further use of Public Private Partnership (PPP) agreements for acute hospitals.
Healthscope acknowledged that the NBH continuing to operate as a PPP was no longer compatible with the government’s objectives.
Healthscope’s CEO Tino La Spina said the operator believed it was “best for the patients, staff and the Northern Beaches community that it is returned to NSW Health, if that is the government’s preferred outcome”.
“The public pressure brought about by the change in policy re PPP structures has created uncertainty about the NBH future and this has put strain on NBH’s people and operations,” he said.
“In the current circumstances, we believe NBH will operate more effectively as part of the public hospital system and its future is assured.”
However, the negotiations are not expected to be all smooth sailing despite the willingness on both sides.
NSW treasurer Daniel Mookhey has already weighed in, saying “after the way Healthscope has managed this partnership, it should not expect to walk away from the Northern Beaches Hospital with a profit”.
He also made reference to the financial troubles Healthscope is currently facing, saying the government would engage with Healthscope management after questions of its ownership and whether it remains a going concern were resolved.
“The NSW government will be watching to ensure that no one is trying to make a windfall gain at the expense of the people of NSW,” he said.
Healthscope, which operates 38 private hospitals around Australia, is on the verge of complete collapse. Some of its hospitals are under a takeover bid as the company struggled under a debt of at least $1.6 billion.
The Sydney Morning Herald quoted Mr La Spina as saying that Healthscope would not be looking for a “windfall gain” in any handback deal with the government.
The news outlet also referred to a fact sheet provided to NBH staff on Thursday, in which Healthscope said this was not the first time the company had made the offer to the government.
It said it offered to return the hospital in 2023 “because we believed the PPP model did not have sufficient support to be successful in the long term”.
La Spina said the move had nothing to do with Healthscope’s broader financial position.
“Where we have potential bidders looking at the assets, what we’re really saying is this particular part of the hospital, if the government wants to … [take] it back, is not up for sale,” he told the SMH.
The NSW Auditor-General’s independent review of the hospital’s performance under Healthscope is due to be released next week.
