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Why Has Healthscope Entered Receivership?

  • Healthscope, Australia's second-largest private hospital group, entered receivership on Monday while continuing to operate its 37 hospitals nationwide.
  • This occurred after Healthscope's owner, Brookfield, a Canadian private equity firm, faced $1.6 billion in debt that lenders and hedge funds withdrew support from.
  • Healthscope treats about 650,000 Australians annually, employs roughly 19,000 staff, and is responsible for around 70 percent of elective surgeries in private hospitals.
  • CEO Tino La Spina said it is 'business as usual' with all hospitals open and no redundancies planned, while additional funding of $100 million from Commonwealth Bank supports ongoing operations.
  • The receivership signals broader financial challenges in Australia's private hospital sector, highlighting pressures from rising costs, workforce shortages, and strained insurer relationships without taxpayer bailouts.
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manlyobserver.com.au broke the news in on Monday, May 26, 2025.
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