Healthscope is set to transition into a not-for-profit entity in an effort to rescue its network of hospitals following its financial collapse last year.

The decision emerged after the company’s creditors turned down a private equity proposal for the Prince of Wales Hospital in Sydney. Instead, they have chosen to shift the operation of 31 Healthscope hospitals, including Prince of Wales, to a newly established not-for-profit organization.

Among the remaining hospitals, five are slated for sale. Meanwhile, Northern Beaches Hospital in Sydney will be handed over to public management.

Tina La Spino, the CEO of Healthscope, announced that the organization is poised to become the leading not-for-profit hospital operator in Australia.

“Today marks a significant transformation for our staff, doctors, and patients, as well as the broader Australian healthcare sector,” La Spino stated.

“Our entire organization is energized by the prospect of transforming Healthscope into the country’s largest not-for-profit hospital operator. This transformation will enable us to reinvest any surpluses back into our hospitals and workforce, ensuring continuous improvements in patient care.”

“I want to thank our teams and our doctors for their support through what has been a challenging period, and I look forward to the exciting journey we’ll take together.”

Buyers were found for five of Healthscope’s hospitals, including Ramsay Health for Canberra’s National Capital Private Hospital in Canberra, Calvary Health for Hobart Private Hospital and Holmesglen Private Hospital in Melbourne, Mater Health for Gold Coast Private Hospital and Day Hospital Partners for Tweed Day Surgery.

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