With the Healthscope saga in its second epic year, lenders have pushed the deadline out so Calvary's consortium can sort out the carve out.
The Calvary consortium now has a final deadline of 21 July to lodge its bid to take over the embattled Healthscope hospital group.
They’ve been given a one-week extension, according to the Australian Financial Review.
The consortium carve-up allegedly could mean Calvary would take over 16 hospitals, Pacific Equity Partners’ Healthe Care would take on Prince of Wales hospital in Sydney and five Victorian hospitals, with HMC Capital as landlord. Doctor-led group Acurio Health would take three hospitals and KnG Group two.
It’s the bid that owners of many of the hospitals, HMC Capital and Canada’s Northwest, are allegedly backing. It’s believed that it’s worth around $400 million.
Still in contention is the “For Purpose” model which was floated late last year as an alternative to a private equity model, however. It received union criticism early on as it proposed workers hand over 90% of their tax savings rather than the regular 50-50 split between employees and employers.
Also in today’s edition:
- Grattan report brands Community Pharmacy Agreement a ‘shakedown’
- Healthscope auction limps into extra time
- Grattan calls for IHACPA to set community pharmacy remuneration
- Private hospital gap fees for specialists rise 61% in five years
- Aged care regulator investigates providers over Higher Everyday Living Fees
Over time, it has garnered support from employees and even the federal government, as it was seen as an option to avoid hospital closures and keep jobs.
Some Healthscope employees said they will leave if the not-for-profit model collapses, with one worker telling HSD anonymously:
“Last time it was a complete disaster with Brookfield – they overloaded the company with debt and didn’t invest in patient care (and sent us into receivership!), we don’t want more of that. Also with private equity, which is for profit, no one gets salary packaging at all which would be such a big benefit.”
Related
The proposal is being led by newly appointed Healthscope advisor and veteran director Dr Helen Nugent, who was brought on to serve as chairman of the For Purpose entity if it goes ahead.
Healthscope CEO Nicole Waldron and Dr Nugent are set to make a face-to-face presentation in favour of the not-for-profit model on 20 July.
They might need to adjust their bid to make sure it stands up commercially compared to the Calvary consortium, however.
Healthscope is now in its second year of turmoil since it parted ways with global asset management firm Brookfield and opened itself up to new owners.
No doubt what employees are most looking forward to is a definitive resolution to this sorry saga.
It’s believed the lenders will make a decision in early August.