The NSW government is one step closer to bringing the controversy-ridden Northern Beaches Hospital back into public hands after striking an $190m in-principle agreement with operator Healthscope and receivers.
The deal marks the “final phase” in the government’s push to return the hospital to public ownership following a string of high-profile controversies, including the death of two-year-old Joe Mass last year.
NSW Premier Chris Minns said the decision by the former Coalition government to enter into a public-private partnership (PPP) at Northern Beaches was “one of the worst decisions of any NSW government”.
“Our state’s acute hospital services that provide lifesaving care to the people of NSW should not be privatised, and thanks to this decision, no hospital in NSW will be,” he said.
Under the agreement, the entire 494-bed hospital will be returned to public ownership.
All clinical and support staff working at the hospital will be offered jobs by NSW Health at the site, and staff entitlements will be transferred from Healthscope.
Health Minister Ryan Park said the state government had in a matter of months undone “one of the most complex privatisation arrangements in the state’s history”.
“We have worked with an urgency and speed to provide certainty for the community, patients and staff. We thank the staff for their hard work and co-operation as we continue to work through the transition,” he said.
“This agreement does not mark the end – but the beginning – of the transition of a major hospital into the public health system.”
Mr Park noted there would still be challenges ahead, but staff and clinicians would have the opportunity to continue working at the hospital.
The NSW government said it would consult with clinicians to determine future clinical services and an operating model, including the role of private services in the hospital footprint.
It will also finalise the legal and commercial arrangements required for transfer.
Northern Beaches Hospital was one of six hospitals earmarked for privatisation under the former government but the only one to go ahead.
Earlier this year, operator Healthscope entered receivership after lenders withdrew their support.
The NSW government has also introduced Joe’s Law, which prevents any further attempts to create PPPs at acute care hospitals.
