With just 24 hours left on the Healthscope deadline, bidders are scrambling. But in a twist worthy of a soap opera, there are rumours of a surprise buyer in town.
The deadline is looming. With just 24 hours to go, bidders for Healthscope are no doubt working overtime to prepare their top bid for the embattled hospital group.
However, amid gossip about buyers including Pacific Equity Partners and various Catholic healthcare operators, rumours of a surprise buyer have emerged: the federal government.
According to The Australian, the government is considering buying the hospitals if the sale process stalls. However, the outlet says a more likely scenario is the government will buy one or two of the hospitals for the states to run.
Surprising news as back in May, federal health minister Mark Butler made his position clear.
“As the government has said all along, there will be no taxpayer bailout. 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.”
Despite this stance, the federal government could provide a plan to help with the hospital bed shortage across the country. It would be cheaper than building hospitals from scratch and could put pressure on health insurers that haven’t wanted to increase reimbursement payments in the private sector.
Healthscope went into receivership in May when its owner, global private equity firm Brookfield, gave up on it and its $1.6 billion debt.
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It’s been reported there have been several management presentations to prospective buyers, with interest ranging from buying one or two hospitals (Knox Private in Melbourne is popular) to bidders picking out their favourite hospitals from the stable of 37. Groups are being told to consider putting forward offers as a consortium.
There was also a rumour that Healthscope management was planning to restructure as a not-for-profit and then bid for itself. That would mean they could save the $100 million it spends annually on payroll tax.
Despite all the speculation, there is yet to be any confirmation from the powers that be.
The Department of Health, Disability and Aged Care (DHDAC) and Minister Butler’s office didn’t respond to Health Services Daily’s questions before deadline today.
Although late afternoon they said:
“As the government has said all along, there will be no taxpayer bailout.
“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.”
Spokespeople for Healthscope and receivers McGrath Nicol both said they wouldn’t comment on the sale process.
We continue to wait.
Updated Friday 29th August 9:18am