Meet the UK hedge fund emerging as Healthscope's kingmaker
Street Talk can reveal Polus' dealmakers are expected to land in Australia next week to meet with key decision makers at Healthscope, after cornering about $300 million of its $1.6 billion debt. That holding makes it one of Healthscope's biggest lenders – miles ahead of rivals like Josh Friedman's Canyon Partners which owns about $50 million to $100 million – and gives it considerable weight in the vote that would be needed to approve or block any asset sales from the receivership.
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The Advertiser
2 days ago
- The Advertiser
As Healthscope's fate looms, Lake Macquarie Private Hospital is expanding
Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital. So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect. "The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said. "We already have a big footprint here." Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month. A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May. An earlier plan for a $120 million, 10-storey tower was also approved. Given the volatility of the market, Ramsay is considering when and how to proceed. However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site. Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up. It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals. "Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said. She said the private health sector in Newcastle was "a very competitive environment". "People are a lot more discerning now. They have information. "They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'." The cost of surgery and seeing specialists in the private sector has come under scrutiny. Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website. The website will display the average fee charged by specialists, including surgery prices, alongside the national average. Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers". He said this fed into "higher out-of-pocket costs and higher private health insurance premiums". Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging". "Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals. Asked if her hospital had experienced a boost, Ms Rewitt said "we have". "We're still in negotiations with a few of the insurers." She said the price of surgeries was "dictated by what we get from the health funds". "They say to us, this is what you'll get for this and that service." The federal health department states that "doctors set their own fees for private medical services". "Many doctors and insurers use gap arrangements to remove or reduce your gap payment. "Fees for the same type and quality of care might vary, depending on who you see and where they are located." Ms Rewitt said the healthcare sector must "find new ways of doing things". "People are getting older and living much longer. They live with lots of comorbidities." She said there was a lot of change and opportunity ahead. "We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better. "The question then is, what resources are available after they've left the hospital." Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital. So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect. "The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said. "We already have a big footprint here." Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month. A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May. An earlier plan for a $120 million, 10-storey tower was also approved. Given the volatility of the market, Ramsay is considering when and how to proceed. However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site. Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up. It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals. "Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said. She said the private health sector in Newcastle was "a very competitive environment". "People are a lot more discerning now. They have information. "They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'." The cost of surgery and seeing specialists in the private sector has come under scrutiny. Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website. The website will display the average fee charged by specialists, including surgery prices, alongside the national average. Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers". He said this fed into "higher out-of-pocket costs and higher private health insurance premiums". Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging". "Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals. Asked if her hospital had experienced a boost, Ms Rewitt said "we have". "We're still in negotiations with a few of the insurers." She said the price of surgeries was "dictated by what we get from the health funds". "They say to us, this is what you'll get for this and that service." The federal health department states that "doctors set their own fees for private medical services". "Many doctors and insurers use gap arrangements to remove or reduce your gap payment. "Fees for the same type and quality of care might vary, depending on who you see and where they are located." Ms Rewitt said the healthcare sector must "find new ways of doing things". "People are getting older and living much longer. They live with lots of comorbidities." She said there was a lot of change and opportunity ahead. "We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better. "The question then is, what resources are available after they've left the hospital." Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital. So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect. "The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said. "We already have a big footprint here." Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month. A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May. An earlier plan for a $120 million, 10-storey tower was also approved. Given the volatility of the market, Ramsay is considering when and how to proceed. However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site. Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up. It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals. "Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said. She said the private health sector in Newcastle was "a very competitive environment". "People are a lot more discerning now. They have information. "They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'." The cost of surgery and seeing specialists in the private sector has come under scrutiny. Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website. The website will display the average fee charged by specialists, including surgery prices, alongside the national average. Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers". He said this fed into "higher out-of-pocket costs and higher private health insurance premiums". Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging". "Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals. Asked if her hospital had experienced a boost, Ms Rewitt said "we have". "We're still in negotiations with a few of the insurers." She said the price of surgeries was "dictated by what we get from the health funds". "They say to us, this is what you'll get for this and that service." The federal health department states that "doctors set their own fees for private medical services". "Many doctors and insurers use gap arrangements to remove or reduce your gap payment. "Fees for the same type and quality of care might vary, depending on who you see and where they are located." Ms Rewitt said the healthcare sector must "find new ways of doing things". "People are getting older and living much longer. They live with lots of comorbidities." She said there was a lot of change and opportunity ahead. "We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better. "The question then is, what resources are available after they've left the hospital." Consumer law won't allow Ramsay Health Care to buy the up-for-sale Newcastle Private Hospital. So said Lake Macquarie Private Hospital CEO Sharon Rewitt when asked about the prospect. "The ACCC wouldn't easily give us another hospital in the Hunter. It doesn't like anyone to dominate completely," Ms Rewitt said. "We already have a big footprint here." Ramsay owns Lake Macquarie and Warners Bay private hospitals, and officially opened a $20 million surgical centre in Charlestown earlier this month. A $45 million, six-storey expansion of Lake Macquarie Private at Gateshead gained state planning approval in May. An earlier plan for a $120 million, 10-storey tower was also approved. Given the volatility of the market, Ramsay is considering when and how to proceed. However, a concussion clinic and stroke unit have been established and the oncology unit has expanded at the Gateshead site. Newcastle Private is among the 37 hospitals owned by Healthscope, which is in receivership and expected to be broken up. It was reported this week that Ramsay was among nine parties to express interest in Healthscope hospitals. "Ramsay has publicly said we would be interested in some of the hospitals in areas where we are not," Ms Rewitt said. She said the private health sector in Newcastle was "a very competitive environment". "People are a lot more discerning now. They have information. "They can say, 'I don't want to go to that hospital because I don't think they're good. I want to go to this hospital'." The cost of surgery and seeing specialists in the private sector has come under scrutiny. Federal Health Minister Mark Butler said in March that the Albanese government would upgrade the Medical Costs Finder website. The website will display the average fee charged by specialists, including surgery prices, alongside the national average. Mr Butler said the cost of medical and hospital services was "a key driver of health inflation for consumers". He said this fed into "higher out-of-pocket costs and higher private health insurance premiums". Ms Rewitt said labour and supply costs had "gone up significantly and remain challenging". "Post-COVID, nothing really returned to normal. Over the last few years, there's definitely been an erosion of margins," she said. Private hospitals have been locked in a battle with health insurers for higher payments to cover the rising costs of treating patients. In March, Mr Butler threatened health insurers with "regulatory action" if they did not take "immediate steps" to boost funding to private hospitals. Asked if her hospital had experienced a boost, Ms Rewitt said "we have". "We're still in negotiations with a few of the insurers." She said the price of surgeries was "dictated by what we get from the health funds". "They say to us, this is what you'll get for this and that service." The federal health department states that "doctors set their own fees for private medical services". "Many doctors and insurers use gap arrangements to remove or reduce your gap payment. "Fees for the same type and quality of care might vary, depending on who you see and where they are located." Ms Rewitt said the healthcare sector must "find new ways of doing things". "People are getting older and living much longer. They live with lots of comorbidities." She said there was a lot of change and opportunity ahead. "We do a lot more work now with robotics. Patients spend a lot less time in hospital. They recover better. "The question then is, what resources are available after they've left the hospital."
Sky News AU
24-07-2025
- Sky News AU
Ramsay Health Care to shut 17 of its 20 psychology clinics in major blow to thousands of Australians
Australia's largest private hospital operator is closing 17 of its 20 mental health clinics across the nation in a blow to thousands of patients that rely on the critical services. Ramsay Health Care said it would close the vast majority of its clinics in a staff meeting delivered earlier this month, which a a spokesperson has since confirmed. 'After careful consideration, we are transitioning Ramsay Psychology to a more flexible and sustainable model, which includes the progressive closure of 17 clinics by the end of August,' a statement from Ramsay Health Care said. 'Three clinics, in Cairns (QLD), Charlestown (NSW) and Joondalup (WA), will remain open to support local needs, maintain key partnerships and pilot more integrated models of care.' Ramsay said the company 'understands' the closures 'might be unsettling' for its clients. 'We understand this change might be unsettling and we are working closely with our psychologists to ensure every client is supported and has continuity of care, whether through our existing and expanded Telehealth service or with another trusted provider, depending on what is clinically appropriate,' the company's statement said. 'This change is part of Ramsay's broader strategy to strengthen how we deliver high-quality, accessible and connected care across hospital, home and virtual settings.' Ramsay sees a broad range of patients including children and young people with PTSD. One anonymous Ramsay psychologist expressed concern about the many patients who are forced to find alternative care after the clinics shut down. "Clients are being left in limbo because they potentially are going to have to wait a month or two to see their regular psychologist if they are continuing on somewhere else, or they're going to have to start all over again," she told the ABC. "The more clients are going through revolving doors, eventually, they just give up. "This has been extremely frustrating because I'm trying to advocate for clients and for best client care, but it's like words are falling on deaf ears, they are not taking concerns seriously." Clinic to shut down in Western Australia include one in West Perth and Mount Pleasant. Victorian clinics include spots in South Melbourne, Box Hill, Bundoora and Frankston, while NSW clinics to close are in St Leonards, Parramatta, Erina and Wollongong. Meanwhile, the Fortitude Valley, Clayfield, Ipswich, Southport, Maroochydore and Coolangatta clinics in Queensland will close down. The closures come amid troubles in the Australian private health sector. Healthscope, which runs 37 hospitals across Australia, recently went under as it faced $1.6 trillion of debt and its lenders voted to put it into receivership. It has received a $100 million lifeline from Commonwealth Bank of Australia, which comes in addition to its current cash balance of $110m and 'substantial additional asset backing across the group', according to Healthscope. The company continues to look for a buyer, but is reportedly pursuing plans to turn itself into a charitable organisation to reduce payroll tax payments and retain its hospitals.
Sydney Morning Herald
20-07-2025
- Sydney Morning Herald
As suitors circle Healthscope, its management mulls a different path
The sales process for Healthscope's failed private hospital business kicks off in earnest this Monday with up to 30 potential suitors due to file their tentative offers for its 37 Australian hospitals, employing 19,000 staff nationally. But the non-binding offers won't include a bid from Healthscope's current management, who are contemplating a scheme to convert the company into a not-for-profit entity. It would mirror the resurrection of Australia's largest child care provider Goodstart Early learning, from the ashes of the collapsed ABC Learning empire, as a not-for-profit provider. Healthscope insiders have confirmed reports in the Australian Financial Review last week that its chief executive, Tino La Spina, is working on the plan as an alternative to a sale of the business to either commercial interests or other Australian not-for-profit operators like St Vincent's Health Australia. Healthscope declined to comment. People with knowledge of the proposal, who are not authorised to discuss the matter, confirmed that the plans are not advanced enough to put in a non-binding indicative offer by the Monday, July 21 deadline. But La Spina's team have been consulting with the receivers from McGrathNicol who are managing the sale, with a view to putting in a proposal during the second stage of the sales process where interested parties are expected to lodge binding offers for the business. This includes local not-for-profit operators, ASX-listed Ramsay Health Care, privately owned Healthe Care and a potential debt-for-equity swap that could see lenders like UK-based Polus Capital take control. The receivers are acting for lenders which are owed $1.7 billion, according to documents lodged with the corporate regulator, the Australian Securities and Investments Commission (ASIC). Australia's Big Four banks are among the lenders which will be hit with significant losses as the sales price is not expected to get anywhere near what is owed to them. The debt includes $52 million owed to the former owner, Canadian financial giant, Brookfield, which had $2 billion in equity wiped out when the group collapsed into administration earlier this year.
