Healthscope's lenders are poised to endorse a rescue plan that will transform the nation's second-largest private hospital operator into a not-for-profit entity.
The deal secures the future of the remaining 32 hospitals and averts a widely feared breakup of the network.
The decision follows a high-stakes standoff where receivers rejected a $120 million bid from Pacific Equity Partners for Sydney’s Prince of Wales Private Hospital—a valuation Healthscope management argued was nearly 50% below market value.
The pivot to a "charity" structure, championed by CEO Greg La Spina, is designed to unlock over $100 million in annual payroll tax exemptions, providing the financial lifeline needed to service a $1.6 billion debt pile left behind after former owner Brookfield walked away in May.
The "PurposeCo" proposal succeeded despite fierce opposition from landlords, including Northwest Healthcare Properties and HMC Capital, who have resisted La Spina’s demands for rent concessions.
While Northwest had lobbied for a deal with Calvary Health Care, lenders—including London’s Polus Capital—ultimately favored the not-for-profit route to ensure operational stability.
The restructure aligns with a shifting regulatory climate; Health Minister Mark Butler has voiced skepticism regarding offshore private equity in healthcare.
The deal provides a reprieve for the Albanese government, which had feared that further sell-offs or closures of loss-making facilities would compromise national hospital capacity.