The fight for Healthscope’s 37 hospitals intensified last week with a final bidding deadline. But will there be another auction round?
Healthscope bidding intensified last week as receivers McGrathNicol gathered final offers for the 37 hospitals in the embattled group. The latest offers were received on Wednesday, despite a deadline extension being expected.
According to the Australian Financial Review, Canada’s Northwest Healthcare Properties has agreed to hand over the operating rights for their 12 hospitals currently run by Healthscope. They include Brisbane Private, Melbourne Clinic, Newcastle Private and Norwest.
It’s rumoured a Catholic healthcare provider (understood to be Calvary Health) will take over the running of the hospitals. This deal will still need the approval from Healthscope’s lenders and receivers.
The Australian reports that Calvary may also bid for other larger hospitals in the portfolio, including Gold Coast Private Hospital, Sydney’s Prince of Wales Hospital and National Capital Private Hospital. They would divest Gold Coast Private Hospital to Mater Hospital Group.
Epworth Healthcare is bidding for five to six Healthscope assets, including Knox Private Hospital in Melbourne. Not-for-profit St John of God is hoping to use the Healthscope sale to build up its east coast portfolio.
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It’s believed other interested buyers include Pacific Equity Partners and Ramsay Health Care which is reportedly looking at Mount Hospital in Perth and Knox Private Hospital.
Meanwhile HMC Capital, which controls 11 hospitals, is negotiating with potential tenants for each of its hospital sites. It told the AFR it was entering final lease agreements if the sale process failed to find new operators.
Although it’s been reported that bids have been below the receiver’s expectations, apparently another round will be needed with competition tightening around a select group of high-performing assets.