HealthCo secures rent as hospital transitions begin

HealthCo Healthcare & Wellness REIT (ASX:HCW) and the Unlisted Healthcare Fund have confirmed that Healthscope remains current with its financial obligations, having paid 100% of all rent due across its hospital portfolio up to and including April.

The stability comes as a major relief to investors and stakeholders amidst a shifting landscape for the hospital operator.

The focus now moves toward a long-term operational shift, as alternative private hospital operators have formally submitted proposals to the receiver.

The proposals are designed to facilitate an orderly transition of operations across all 28 hospitals currently managed by Healthscope.

The objective is to provide a holistic solution that guarantees continuity of service for patients while ensuring the portfolio remains tenanted by well-capitalised operators with proven operational track records.

The plans emphasise the maintenance of jobs for nurses and hospital staff, providing much-needed transaction certainty and an expedient transfer process.

The Landlords have clarified that they have not yet received any formal proposals or requests regarding the assignment of existing leases under the "PurposeCo" model.

At the time of reporting, HealthCo Healthcare & Wellness REIT's share price was $0.70.