AMA welcomes plan to keep Healthscope hospitals running
The Australian Medical Association welcomes the announcement that Healthscope hospitals will continue to operate, with the sale and transfer of six hospitals and the remaining 31 to operate under a new not-for-profit structure.
AMA President Dr Danielle McMullen labelled the plan — announced by receivers McGrathNichol — a good outcome for patients, Healthscope staff, doctors and private health insurers.
The plan will ensure care continues across Healthscope’s network of hospitals. While ownership may be changing, these hospitals are a vital part of the fabric of private healthcare delivery in Australia.
Since uncertainties around Healthscope’s future emerged last year, the AMA has been engaging with the federal government and advocating for an orderly resolution that ensures the continued operation of Healthscope’s hospitals.
“Today’s announcement provides much‑needed certainty for patients, doctors, and the dedicated staff working in Healthscope hospitals. Continuity of care is essential, and this decision means patients can continue to schedule surgeries and treatments with confidence,” Dr McMullen said.
“This outcome reflects the importance of a stable and sustainable private hospital network as part of Australia’s broader healthcare system.
“Healthscope’s hospitals play a vital role in delivering high‑quality care, and ensuring they remain open and supported is in the best interests of patients and the health system as a whole.”
However, Dr McMullen said it was deeply concerning that Healthscope reached this point in the first place — a situation that highlights the urgent need for comprehensive private health reform.
“Private hospitals across the country have been under increasing strain, and many private hospital services —particularly maternity — have closed in recent years,” Dr McMullen said.
“We remain concerned more closures will follow unless meaningful reform occurs and private hospitals can operate on a more sustainable financial footing.
“Establishing an independent Private Health System Authority is essential to provide proper oversight and drive the reforms the sector urgently needs.”
