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Lenders Approve Not-for-Profit Rescue for Healthscope

The lender-backed structure aims to keep the hospital network intact under a charity model with operations targeted by mid-2026.

Overview

  • A deal finalised early Friday follows the rejection of a private equity offer for Sydney’s Prince of Wales Private hospital.
  • The new entity is slated to run about 31 hospitals with roughly 18,000 staff, with operations expected by mid-2026.
  • Chief executive Tino La Spina led the plan to keep the hospitals together and shift surpluses into care, removing payroll tax costs estimated at up to $100 million a year.
  • Receivers said the move prevents closures and protects jobs, although rent renegotiations with major landlords remain a key hurdle.
  • The resolution ends months of uncertainty after Healthscope fell into receivership in May 2025 when Brookfield withdrew support for about $1.6 billion of debt.