A public forum in Dee Why has intensified calls for the State to take control of Northern Beaches Hospital after its operator’s parent company entered receivership.
Background and Ownership Issues
The parent company of Healthscope, the private operator of Northern Beaches Hospital, has entered receivership following the withdrawal of support from lenders. Healthscope, which operates 37 hospitals across Australia, remains functional, with management confirming that operations, staff, and patient care continue without disruption.
Healthscope’s parent company, formerly controlled by Brookfield, failed to manage its $1.4 to $1.6 billion debt load, leading to receivership under McGrathNicol. A $100 million funding facility has been secured from the Commonwealth Bank to support ongoing operations.
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Dee Why Forum Highlights Community Pressure
At a recent community forum held at Dee Why RSL, attended by NSW Health Minister Ryan Park and Treasurer Daniel Mookhey, the issue of hospital ownership took centre stage. The forum, organised by local officials Jacqui Scruby and Michael Regan, followed growing concern over the hospital’s performance under the public-private partnership.
The forum also featured families impacted by incidents at Northern Beaches Hospital, including those of a toddler who died following an emergency department visit in 2023. The case was among several prompting an independent audit and a government taskforce to review the hospital’s management model.
Operational and Financial Clarity
Healthscope clarified that the receivership applies only to its parent company, not the hospital-operating entities. All 37 facilities, including Northern Beaches Hospital in Frenchs Forest, are continuing normal services, with no changes to staffing or patient care.
The NSW Government confirmed it has contingency plans in place, including deploying a NSW Health executive team if required. Healthscope holds $110 million in cash and the additional Commonwealth Bank credit line to ensure continued hospital operations.
Public Ownership Proposal
State and federal representatives have voiced support for public ownership. Healthscope has already offered to hand back the public portion of Northern Beaches Hospital, which it operates under contract until 2038. The private portion remains under contract until 2058.
While Mr Park acknowledged the complexity of such a takeover, local officials continue to urge the government to acquire both components. A voluntary contract termination bill has been proposed to bypass compensation payments, which have been cited as a barrier.
Community Sentiment in Dee Why
Residents and health professionals attending the Dee Why forum expressed frustration over ongoing uncertainty. Concerns were raised about understaffing, resource limitations, and the risks of relying on private equity to manage essential public services.
Speakers called for full public acquisition, increased investment, and improved hospital management to restore public confidence.
Next Steps
McGrathNicol has confirmed it intends to sell the hospital operations as a going concern and will engage with stakeholders to ensure continuity. The NSW Government has not yet committed to purchasing the entire hospital.
Public discussion, particularly in Dee Why, remains focused on the future of hospital services and whether the current ownership model is sustainable.
Published 28-May-2025
