Consortium to take over struggling hospital provider Healthscope
Updated . First published at
Australia’s second-biggest private hospital operator Healthscope is set to be split up, under a private equity agreement announced on Monday.
The beleaguered healthcare company’s lenders backed the deal to divide Healthscope between a consortium of private health providers.
The Prince of Wales Hospital in eastern Sydney is set to be owned by part of a consortium acquiring Healthscope. Peter Rae
Healthscope fell into receivership in May 2025 as it battled a debt bill worth about $1.6 billion.
Under the deal, 14 of the company’s remaining 25 hospitals will be run by not-for-profit firm Calvary Health Care.
Calvary will also acquire Healthscope’s central corporate and head office functions and manage the transfer of individual hospitals to other operators.
Speaking on behalf of the consortium, Calvary Health Care chief executive Damien Bruce said the agreement would provide security for the thousands of staff at the metropolitan and regional hospitals.
“We recognise the resilience and dedication shown by staff through a period of significant uncertainty, and we thank them for their ongoing commitment to patients and families.
“Together, we have an opportunity not only to grow, but to build a stronger, more sustainable future for health care that continues to put people at the centre.
“Our focus will be to provide certainty, stability and confidence for staff, visiting medical officers, patients, residents and clients as we work together through the transition,” he said.
“We look forward to listening, learning and partnering closely with local teams in the months ahead, while continuing to deliver safe, high-quality care and preserving what matters most to the communities we are privileged to serve.”
Healthscope will acquire six hospitals, including Prince of Wales Private Hospital in Sydney and Victoria’s Knox Private Hospital.
The rest will be run by private operators including Acurio and KnG.
Providing about 70 per cent of Australia’s elective surgeries, a secure future for Healthscope is crucial for the country’s health system.
Healthscope’s receivers say the deal is scheduled to be finalised by November 30.
Share a tip-off, video or photo with us
