Healthscope, Australia’s second largest private hospital operator, has entered administration but says the group’s 37 hospitals nationwide, which employ more than 100 ENT surgeons, remain open while a buyer is sought.
Healthscope announced on 26 May 2025 that receivers had been appointed to its parent companies. A statement said all Healthscope hospitals would continue operating “with no impact on hospitals, staff, doctors or patients”, and no redundancies or hospital closures.
“Healthscope’s parent entities have entered receivership, with its lenders appointing
McGrathNicol Restructuring to work with Healthscope management to complete an orderly sale of the business,” a media release on its website said.
“The operational business, which runs the hospitals, is not in receivership.”
Nationwide its hospitals employ about 19,000 staff, including 108 ENT surgeons.
The Commonwealth Bank of Australia has provided a new $100 million funding package to McGrathNicol to support operations during the sale process.
The Healthscope board appointed partners from KordaMentha as administrators to the same non-operating entities, as is common practice. The receivers will assist the administrators as required to fulfil their statutory role, the statement said.
The new funding package is in addition to Healthscope’s current cash balance of $110 million, and substantial additional asset backing across the group, it said. Healthscope’s existing working capital financier is also providing support, it added.
“Key supplier relationships will remain unaffected, with payment terms maintained,” the statement said.
Healthscope’s management team, led by CEO Mr Tino La Spina, will continue to lead the
business and operations.
“All 37 of our hospitals continue to operate as normal and today’s appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients,” he said.
“There is no interruption to the outstanding care we provide. Our incredible teams are all
working as normal, providing the high standard of care they always have. The additional
funding, while we do not anticipate it being required, provides additional support.
“The receivers and management share the same goal of maintaining our market leading
standards of patient care and protecting the business, the hospitals and our amazing
people.”
No plans for closures or redundancies
Healthscope said McGrathNicol intended to transition all hospitals to new ownership, with no plans for hospital closures or redundancies. McGrathNicol would undertake “an immediate review of the sale process to date, with a view to re-engaging with interested parties in coming weeks”.
McGrathNicol partner and appointed receiver, Mr Keith Crawford said: “We want to make it clear that the subsidiaries that own and operate Healthscope’s network of hospitals are not affected by our appointment to the shareholding companies.
“Our immediate focus is to engage constructively with all key stakeholders to ensure uninterrupted operation of Healthscope hospitals and continuity of best practice standards of patient care.
“We will also work closely with Healthscope management to support any operational funding requirements via access to $100 million of new funding from the Commonwealth Bank while we pursue an orderly transition of ownership of Healthscope’s hospitals.”
No taxpayer bailout
Mr Mark Butler, Minister for Health and Ageing, Disability and the NDIS, jointly announced the business had gone into administration. He said the Government had met with the administrator and receiver today to outline its priorities and expectations, but said there would be no taxpayer bailout.
“As the Government has said all along, there will be no taxpayer bailout,” he said. “We remain steadfast in our view that an orderly sales process that maintains the integrity of the entire hospital group will provide the best outcome for patients, staff, landlords and lenders.”
He said the Department of Health, Treasury, Finance and other relevant departments had been working closely to ensure the government could respond to developments.
Throughout the process the government had met regularly with Healthscope. “We have clear expectations that the hospital group, lenders, and landlords will act cooperatively and deliver the least disruptive outcome for patients, staff, and the broader health system,” he said.
“The Government expects all parties to continue to put patient care and workers as their priority. We expect that these hospitals remain a critical part of our healthcare system.”
The Government “did not want any of these important assets to be put in jeopardy to satisfy international investors”, Butler said.
He said news of the administration would be highly distressing to patients, staff and local communities that depended on Healthscope’s services.
“While Healthscope have announced they will remain operating as normal with no change to patient care or staffing, this will still be difficult for the hospital’s employees, and their patients,” he said.
“As Healthscope have today stated if you have a planned procedure in one of their hospitals it will go ahead.”
Healthscope has recently been in the spotlight after a stoush with Bupa and Australian Health Service Alliance, with Healthscope announcing it would charge out-of-pocket costs to policyholders with these health funds and threatening to terminate contracts with them before reaching new agreements.
