As the news broke on 26 May that Healthscope had been placed into receivership, ANMF members employed at Healthscope’s many hospitals around Victoria and Australia were understandably worried. ANMF has had urgent meetings with members as well as with Healthscope management and the receiver, and discussions with federal and state governments, to ensure there is a plan in place to protect the jobs and entitlements of our members at Healthscope hospitals.
Speaking after Healthscope was placed in receivership, ANMF Federal Secretary Annie Butler said the union was reassured to hear from Healthscope that an additional line of credit from some of the Banks had been secured to ensure all its hospitals keep operating without impacts on staff or patients but remains concerned about the longer-term future for the group.
‘For nurses and midwives working at Healthscope, this situation is obviously very difficult and worrying, and our thoughts are with them. However, we have been assured that their jobs and their patients are secure at this time,’ Ms Butler said.
‘We are extremely concerned, but the ANMF is working with state and federal governments and all stakeholders to ensure that we are front and centre of discussions with potential buyers so we can ensure our members will be in safe hands.’
While there have been lots of rumours in the media about different groups potentially looking to buy Healthscope hospitals, none of these are decided and at this stage, and ANMF is not aware of any confirmed plans to sell or close any of the hospitals. A meeting with Healthscope leadership on 2 June confirmed there will be no hospital closures or redundancies because of the receivership.
ANMF (Vic Branch) Acting Secretary Maddy Harradence said the Healthscope announcement is a clear reminder that Australia needs better regulation of the private health sector. ‘We will be urging the Federal Government to review the types of companies they allow to participate in the delivery of health services to prevent unethical and unscrupulous parties that have no regard for patients or the health workforce from entering the system. We can’t allow profits to be put before patient care.
‘Here in Victoria,’ she added, ‘we need a plan that considers the more than 1,600 beds that Healthscope currently operates – including specialised mental health services, maternity services, elective surgery and rehabilitation programs. There is scope already in Victoria for a state government takeover of Healthscope hospitals.’
In 2022 the Victorian Government took over two Healthscope facilities – Frankston Private and Bellbird Private hospitals – to assist with the increased pandemic demand for elective surgery services. Previously, the state government has also taken over Mildura Base Hospital, returning it to public control after more than two decades being run by Ramsay Health Care. Mildura Base was originally privatised in 1998 by the Kennett Government.
Members committed to continuing clinical care
Almost 2,500 ANMF (Vic Branch) members work at Healthscope’s 12 hospitals in Melbourne and Geelong. Branch officials and staff met with members on 28 May, and over the past week have been conducting site visits at each Healthscope site.
Our members are committed to continuing their high standard of clinical care to their patients, women and consumers/clients. The Branch will support members during every step of this process, and advises any nurse or midwife working at Healthscope who is feeling anxious or stressed to also contact the Nursing & Midwifery Health Program Victoria (NMHPV) on 03 9415 7551.
What are Healthscope’s hospitals and facilities in Victoria?
- The Dorset Rehabilitation Centre
- The Geelong Clinic
- Holmesglen Private Hospital
- John Fawkner Private Hospital
- Knox Private Hospital
- La Trobe Private Hospital
- Melbourne Private Hospital
- Northpark Private Hospital
- Ringwood Private Hospital
- The Melbourne Clinic Private Hospital
- Victoria Clinic Private Hospital
- Victoria Rehabilitation Centre
What is receivership?
Receivership is a formal process to allow a secured creditor to recover a debt without placing the debtor in liquidation. The appointed receiver will investigate Healthscope’s financial position and develop a plan to recover some or all of the debt.
From what ANMF currently knows, there is no immediate problem with Healthscope’s cash flow. We understand that the Commonwealth Bank has agreed to provide a line of credit to Healthscope to keep facilities operational for at least the coming months.
Healthscope has a complex corporate structure, consisting of multiple layers of companies, with each one owning the entity beneath it. The company that employs nurses and midwives and manages their wages and conditions is positioned at the bottom of the corporate structure. The two companies at the top of Healthscope are the ones currently under receivership.
All employment obligations remain on Healthscope, including continuing to pay its nurses and midwives in accordance with the enterprise agreement and the Fair Work Act.
How will this affect bargaining for the new Healthscope enterprise agreement?
The Healthscope – Victoria – Nurses’ and Midwives’ Agreement 2021-2025 is due to expire on 30 June. ANMF is scheduled to commence bargaining with Healthscope management for a replacement EBA no later than 16 June.
As of Thursday 29 May, ANMF had received confirmation from Healthscope management that they are ready to bargain. ANMF remains committed to achieving a positive replacement agreement for Healthscope members.
