At the same time, the New South Wales government made a big announcement that Northern Beaches Hospital would be an “advanced” hospital. They announced an in-principle agreement to acquire the facility, which has been operating under a public/private model since it opened in 2018. The state government plans to pay $190 million to Healthscope, the private operator, covering the costs associated with building the hospital’s facilities. This decision comes on the heels of the shocking, heartbreaking death of two-year-old Joe Massa at the hospital last year. There were grave shortcomings revealed while investigating the controversy surrounding this event.
Under the new agreement, the government will take control of Northern Beaches Hospital back from Lendlease. This new facility has 494 beds and has been providing care to public patients under a contract with the government. The change is meant to directly address community concerns over the hospital’s for-profit operational model. It hopes to ensure that future tragedies do not plague the city.
Background of the Agreement
Since the death of Joe Massa, Healthscope has been heavily criticized, leading to investigations that found multiple operational failures within the hospital. As Premier Chris Minns said, this decision is a clear and robust response to the findings. Through bold, honest leadership, he hopes to bring the public’s trust back in our nation’s healthcare system.
“Our state’s acute hospital services, that provide lifesaving care to the people of New South Wales, should not be privatised,” said Premier Minns.
The $190 million deal only addresses the sunk costs in building the hospital’s physical plant. It excludes all projected historic and future profits of Healthscope. This funding agreement truly shows the federal government’s dedication to keeping our health services publicly owned and accountable to the public.
Jobs and Future Operations
The government is not just making an incremental change to improve its processes. They will give first choice to current clinical and support staff at Northern Beaches Hospital under employment with NSW Health. This decision balances the need for continuity of care and service support with the interests of employees and patients during a relatively short transition period.
NSW Health Minister Ryan Park highlighted the importance of this new model of operation, stating, “It marks the beginning, not the end, of what will be a change in model of the way in which that hospital works.” The government’s strategy focuses on improving value by delivering higher quality patient care while achieving better outcomes for patients.
Elouise Massa, Joe’s mother, said she was thankful over the board’s decision. She stated, “We don’t want anyone else going through what we have gone through — the absolute torment, the heartbreak.” Her advocacy for change has touched a nerve with many people in the community. More importantly, it’s been central to raising the alarm about the need for systemic reform within hospitals.
A Commitment to Public Health
In response, Premier Minns indeed doubled down on his government’s pledge to protect the state’s public health system, aka NSW Health. His office went a step further to suggest that no additional hospitals will be privatized under this ruling. Through this message we hope to reaffirm the residents’ confidence in their continuing access to care.
“Thanks to this decision, no hospital in NSW will be privatized,” Minns remarked. He also acknowledged the role of advocacy in effecting change: “Their advocacy will leave a lasting legacy for every patient and every family who relies on our public health system.”
As the deal moves to Healthscope’s lenders consortium for ratification, all eyes are now on the next steps. It comes as approval is given for Northern Beaches Hospital to switch from private into public management. This significant legislative shift presents a real opportunity to transform how healthcare is delivered across the region.
