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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Private hospital giant Healthscope falls into receivership
Healthscope, one of Australia’s largest private hospital groups has collapsed. The company has 37 hospitals across the country and employs around 20,000 people. Its owner, Canadian private equity group Brookfield, has been struggling to pay back $1.6 billion to creditors.
·Sydney, Australia
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