The Northern Beaches Hospital was opened in 2018 under a PPP between Healthscope and NSW Health. Photo: Healthscope.
The Public Private Partnership (PPP) between healthcare provider Healthscope and the NSW Government to operate the new Northern Beaches Hospital will likely be dissolved following the government’s refusal to enter into such agreements in the future.
The hospital has been run under a PPP signed in 2014, with the new facility opening to patients in 2018.
The proposal reportedly came from Healthscope in the wake of the 2024 death of 22-month-old Joe Massa after he received treatment at the hospital’s emergency department, and the NSW Government’s introduction last month of legislation known as ‘’Joe’s Law’’, which would see the future use of such PPPs banned.
Healthscope has since accepted that there were “unacceptable failings in the treatment of Joe”, and that the company was “sorry that Joe did not receive the care he deserved at our hospital”.
In a 10 April statement, the company said it had confirmed to the NSW Government that it is willing to begin talks about returning the hospital to the NSW public system.
“The NSW Government has recently introduced policy preventing the further use of PPPs in the health sector,” it said. “Healthscope acknowledges that [Northern Beaches Hospital] continuing to operate as a PPP is no longer compatible with the government’s objectives.”
Healthscope CEO Tino La Spina said the proposed hand-back offer was not a reflection on what he said were the dedication and commitment of the hospital’s team.
“NBH is a first-class facility, served by qualified, skilled nurses, doctors and staff, whose clinical performance has been acknowledged and commended by independent authorities,” he said. “They have Healthscope’s absolute support for the work they continue to do, in often intense circumstances.
“However, we believe it is best for the patients, staff and the Northern Beaches community that it is returned to NSW Health, if that is the government’s preferred outcome.”
NSW Treasurer Daniel Mookhey said he understood Healthscope had engaged in a market process potentially seeking to exit the business.
“After the way Healthscope has managed this partnership, it should not expect to walk away from the Northern Beaches Hospital with a profit,” he said.
“The NSW Government will be watching to ensure that no-one is trying to make a windfall gain at the expense of the people of NSW.
“The government will engage with Healthscope management after questions of its ownership and whether it remains a going concern are resolved.”
Health Minister Ryan Park said the Labor Government had made it clear that it did not support PPPs in the state’s acute hospitals.
“We will carefully consider any proposal regarding Northern Beaches Hospital,” he said.
“We can assure the community that Northern Beaches Hospital will continue to operate without interruption during any discussions.”
