Tino La Spina said landlords and lenders will ‘take a haircut’ but patients and staff will not, while promising a fight with private health insurers was ‘for another day’.
Tino La Spina, CEO of now in receivership private hospital operator Healthscope has promised there will be no closures at any of the company’s 37 hospitals, no redundancies among its 19,000 staff and no cuts to health services for patients.
“It’s business as usual,” said Mr La Spina, speaking to the media alongside representatives of administrators McGrathNicol Restructuring.
“All 37 of our hospitals continue to operate as normal and today’s appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, staff or patients,” he said.
“There is no interruption to the outstanding care we provide. Our incredible teams are all working as normal, providing the high standard of care they always have.
“The additional funding, while we do not anticipate it being required, provides additional support.
“The receivers and management share the same goal of maintaining our market leading standards of patient care and protecting the business, the hospitals and our amazing people.”
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Mr La Spina confirmed that there were 10 non-binding offers already filed for Healthscope — some for the whole business, others for select hospitals.
Mr La Spina said Healthscope and its Canadian owners, private equity firm Brookfield had faced three “core issues” in keeping the Healthscope solvent.
“There’s been too much secured debt – that’s being addressed in this process,” he said.
“The rentals that the company is paying are too high. That will be addressed as part of this process.
“The third, as it has been widely spoken about, is the industry structure, with private health insurers basically having squirrelled away billions of dollars over the last few years and not putting it back into the private sector.
“That is a fight for another day.
“What we’re talking about here is a process to address those first two issues. Then, as the most efficient operator in the hospital sector, I believe that we will be in good stead to be able to address the third issue.
“That is a fight for another day.
“There’s no doubt that our lenders will be taking a haircut. There’s no doubt that the landlords will need to take a haircut as well.
“For our people, our doctors, our nurses and our patients, they will not be asked to take a haircut. It’ll be business as usual.
“There will be no hospital closures, there will be no redundancies. Our patients, our doctors and our people can expect to come to our facilities and provide or receive the same amazing care they do always,” said Mr La Spina.