In 2023 the ACT Government acquired Calvary Public Hospital Bruce (now North Canberra Hospital) following the introduction of the Health Infrastructure Enabling Act 2023 (the Act).
The Act made provision for claimants to seek compensation for costs incurred as a result of the transition, including Just Terms compensation for the acquisition of the land and buildings and termination of the Calvary Network Agreement.
Late last week, the Government and Calvary Health Care ACT (Calvary) finalised a deed of settlement and release, concluding the determination of Just Terms, as required under the Act. This settlement includes the payment of $65 million (including interest) in addition to the $23.2 million the Territory previously paid to Calvary in early compensation to enable Calvary to cover payments which became due as a result of the acquisition.
The ACT Minister for Health, Rachel Stephen-Smith MLA, said "The cash payment agreed with Calvary is in line with the projections and provisions made by the Territory at the time of the acquisition.
"I am pleased that we have been able to reach an agreement that provides certainty for the Territory and Calvary and effectively concludes the acquisition process."
Since acquisition the Territory and Calvary have been progressing through the Claims Process as established under regulation. This process has seen the assessment of many claims, through robust processes and governance. In May this year, the Territory formally commenced negotiations to finalise all outstanding matters with Calvary.
In coming to a settlement and agreement, the Territory has waived some debts, liabilities and other financial offsets. The Territory has also entered into an Operations Agreement with Calvary to support ongoing collaboration in relation to the operation of the Bruce campus.
"The acquisition was made to facilitate planning and delivery of the more than $1 billion new northside hospital – a long-term investment in our public health system that is progressing well with the announcement in March of Multiplex as our early delivery partner," said Minister Stephen-Smith.
"I recognise that the acquisition and transition were stressful for many staff, and I thank the incredible teams at North Canberra Hospital and Clare Holland House that have continued to provide exceptional care as part of Canberra Health Services.
"Since the transition, there have been many achievements as staff have worked together across our hospitals to build a single integrated public health system.
"Calvary will also continue to be an important partner in delivering health care in Bruce and across the ACT through its private hospitals and aged care facilities.
"The ACT Government will continue to work closely with Calvary on operational matters between our services in Bruce, including on the provision of utilities, the use and maintenance of the airbridge and access to carparking.
"As we look to the future, I am excited about the next steps of our continued work with Calvary and building a strong health precinct in Bruce, ensuring every Canberran has access to high-quality care, close to home, when they need it most."
