Parents who lost their toddler son after his admission to a hospital at Frenchs Forest told a packed community forum that the hospital’s structure and systems “do not work” and have “failed catastrophically,” intensifying calls for authorities to take full control of the facility.
The forum, held on 20 May, was attended by hundreds of concerned residents and prominent government figures, including NSW Health Minister Ryan Park and NSW Treasurer Daniel Mookhey. It comes amidst ongoing criticism of the public-private partnership (PPP) model, which has plagued the hospital since it opened in 2018.
Community members have repeatedly raised concerns about staffing shortages, long wait times, and the complex dual model where public and private patients are treated under the same roof.
Government Weighs Options for Public Services
NSW Health Minister Ryan Park informed the community that the government would do “everything they can” to return Northern Beaches Hospital’s public services to public hands. However, he stopped short of committing to a complete hospital takeover. Pittwater MP Jacqui Scruby, who co-hosted the forum with Wakehurst MP Michael Regan, described separating the public and private components as “very hard to unscramble an egg.”
The hospital operates under a 20-year contract with the State Government to provide public and private health services. The private operator, Healthscope, has indicated a willingness to return the public portion of operations, particularly emergency services, but is reportedly open to finding a buyer for its private hospital operations.
Healthscope’s Proposals Dismissed
Treasurer Daniel Mookhey clarified why the State Government rejected Healthscope’s offer to return the public portion of the hospital in January. He stated the offer “wasn’t real.” He explained that Healthscope had approached the government multiple times, initially in 2023, seeking payment to leave the public sector after accumulating significant debt.
Later, they sought a renegotiation where they wanted to be paid like a private hospital while continuing to provide public health services. Mr Mookhey said the State did not take these proposals seriously, as Healthscope’s position appeared to be “pay us if you want us to leave.”
Regarding implementing legislation that bans new public-private partnerships, Mr Mookhey stated the State Government is working through “various complexities” because the current contract is already in place. Mr Regan mentioned he has moved a ‘Compensation Bill’ to prevent Healthscope from receiving compensation if the State backs out of its contract obligations.
Unclear Path for Full Public Control
When asked if the state government would buy back the hospital’s private sector, Mr Mookhey stated he could not speak on behalf of Healthscope, which was not present at the forum. He also indicated that, to his knowledge, Healthscope has no desire to exit the private component. However, Healthscope CEO Tino La Spina has previously suggested that their business, including the private hospital, could be reviewed by potential sponsors.
A report from the NSW Auditor-General highlighted concerns about the hospital’s risk management, electronic systems, cost-cutting measures, and emergency department wait times. The report stated that the hospital was not meeting key clinical outcomes and had not properly addressed safety issues.
Health Minister Park assured attendees that the Northern Sydney Local Health District is “micro-managing” the hospital’s clinical performance and reporting to him fortnightly with recommendations. The Clinical Excellence Commission also leads a review into the emergency department, focusing on paediatric care.
Staffing Ratios and Patient Safety
Nurses and midwives have been striking since last year due to underpayment and the lack of mandatory, safe nurse-to-patient ratios. Health Minister Park affirmed that the government can and will enforce nurse-to-patient ratios if it takes over the emergency department and the public component of the hospital, but this cannot happen until a new contract is finalised.
Regarding patient complaints and safety reports, Mr Park explained that complaints are handled through the hospital’s management team, with the Northern Sydney Local Health District monitoring their operations. Individuals can also lodge complaints with the Healthcare Complaints Commission, an independent body.
Mr Park also guaranteed that if the State takes over the public beds, services will not be reduced, and funding will be properly assessed. He added that the government is reviewing the existing contract and providing “top-up funds” to Healthscope to meet critical standards.
Financial Instability and Future Timeline
Mr Mookhey confirmed that Healthscope is selling its debt to hedge funds, with Australia’s ‘big four’ banks also owning about 14 per cent of the debt. He noted a “big chance” Healthscope will go into insolvency, triggering an “administration event” and prompt the State’s response. He added that the issue of staff wages and entitlements in such an event would fall under the Federal government’s jurisdiction and its insurance and protection schemes.
According to Mr Mookhey, the timeline for a hospital ownership handover remains “inherently uncertain. ” A significant upcoming date is May 26, when banks will decide whether to enforce their loans, which could lead to Healthscope’s insolvency.
Despite the broader issues, Dr Cliff Reid, an emergency department consultant at the hospital, sought to reassure attendees that the facility is run by highly trained and dedicated staff. He stated that while issues like Joe Massa’s case deeply sadden the team, they operate a “world-class resuscitation facility.”
Published Date 26-May-2025
