The Minns Labor Government will introduce amendments to the Member for Wakehurst's Private Member's Bill next week, which would enable the NSW Government, if required, to terminate the Northern Beaches PPP contract as if a hospital operator default had occurred.
This follows the appointment of receivers to the parent entities of Healthscope, which the NSW Government considers a default under the contract.
It is the preference of the NSW Government that agreement on the future control and operation of the Northern Beaches Hospital can be reached with Healthscope and its receivers.
However, the Government must be able to act decisively to avoid a prolonged dispute for members of the Northern Beaches community, staff working at the hospital and for NSW taxpayers.
If a mutual agreement is not reached, the proposed amendments would give the Health Minister the power to issue a termination notice to Healthscope. In addition, the Treasurer would have the power to ensure that compensation negotiations occur in a reasonable time frame and to appoint an independent person to determine compensation if agreement cannot be reached.
The alternative to this approach is for the NSW Government to exercise its voluntary termination rights. Under the PPP contract signed by the Liberal Party, this would see compensation to Healthscope's receivers and lenders run into the hundreds of millions of dollars.
The government's legislative approach will ensure there are no windfall gains to Healthscope or its receivers.
Discussions between the Northern Beaches Hospital Taskforce, Healthscope and its receivers remain ongoing, and we are hopeful of a productive outcome.
NSW Health will continue to work closely with Healthscope to ensure that patient safety and continuity of services at the Northern Beaches Hospital will not be compromised as negotiations continue.
The Minns Labor Government passed legislation earlier this month banning any repeat of the failed Northern Beaches PPP model in acute care, ensuring that the Liberals' privatisation of acute public hospitals never happens again.
Treasurer Daniel Mookhey said:
"This is not a decision we take lightly.
"But we are now in a position where the Liberal's privatisation mess means Healthscope's receivers are negotiating the future of the Northern Beaches Hospital.
"While an agreed exit from this failed PPP contract remains my preference - I must ensure the government has the right to step in and protect the Northern Beaches community from this dragging on.
"I thank the local Independent Members Michael Regan and Jacqui Scruby for their passion and advocacy."
Health Minister Ryan Park said:
"We've made it clear from the very beginning that we don't support this sort of arrangement.
"This is a complex contract but the community deserves certainty.
"The other mob may have created this mess, but we are going to be the ones to clean it up."
