Private hospital giant Healthscope falls into receivership after lenders withdraw support
Guardian5 days
Healthscope Enters Receivership With AU$1.6 Billion Debt
Above: Healthscope headquarters in Melbourne, Australia, on July 19, 2010. Image copyright: Carla Gottgens/Bloomberg via Getty Images
The Spin
Narrative A
Healthscope's collapse is not the disease but a symptom of a more serious affliction. Even if a buyer rescues the private hospital operator, it will not fix the obstacles facing Australian healthcare. Hospital reform is needed to find a better balance between insurance groups and hospital operators and ensure the industry's investment needs continue to be met.
Narrative B
The receivership announced on Monday is the best way to rectify Healthscope’s financial problems. The funding provided by the Commonwealth Bank, coupled with the company’s balance, will ensure that Healthscope's services continue to run as normal. The uncertainty of the sale process will not last long, as confidence is high that a buyer will be found.