Health deal lacks detail

THE preferred tenderer to continue operating the Hobart Private Hospital has promised to deliver a 24-hour emergency department.

But Health Minister Sarah Courtney was unable to say how long the lease term would be, other than “at least 10 years”, whether the Government was paying anything to the company or vice versa, what services would be guaranteed and how many tenderers there were.

Ms Courtney said Healthscope would continue its lease.

FRIDAY, AUGUST 30, 2019 themercury.com.au SUBSCRIPTIONS 1300 696 397 HEALTHSCOPE has been announced as the preferred tenderer to continue operating the Hobart Private Hospital — with a promise to deliver a 24hour emergency department.

The announcement, by Health Minister Sarah Courtney, came a month late and short on details as negotiations continue ahead of a December deadline.

“This is a great outcome for the state of Tasmania, and a great outcome for patients and staff,” she said.

However, Ms Courtney was unable to answer questions on how long the lease term would be, other than “at least ten years”, whether the Government was paying anything to the company or vice versa, what services would be guaranteed, and how many tenderers there were.

But she said the tender process had been competitive and “done at arm’s length”.

“The finer aspects of it I can’t disclose because they’re commercial- in- confidence,” she said. “But I’m very confident the negotiations we’ve had to date will lead to better outcomes for Tasmania.”

The Minister’s own media release clarified there had been seven tenderers.

Hobart Private General Manager, Kathryn Berry, said the company and its staff were pleased at the outcome, which provided certainty for continuing operations.

“Healthscope has served the Tasmanian community as the operator of the Hobart Private Hospital for the past 20 years, and we are very proud that after a competitive tender process we will continue to do so,” Ms Berry said.

The Hobart Private Hospital employs more than 550 people, including 350 nurses, treats more than 23,500 patients and carries out 14,000 procedures per year. Healthscope is owned by Canadian private equity firm Brookfield Asset Management.

Ms Courtney said the Government had not been swayed by that company’s reputation as an aggressive avoider of paying company tax.

“Every dealing I have had to date with Healthscope has been very positive,” she said.

Greens health spokeswoman Rosalie Woodruff said Brookfield was controlled from an offshore tax haven in the Cayman Islands.

“Brookfield’s directors’ function is to maximise profits from all their assets, including the Hobart Private Hospital, and move them to offshore tax havens,” she said.

“These structures are created to aggressively minimise tax and hide information.”

Labor’s health spokeswoman Sarah Lovell said the details of the deal must be made public.

“The Government had been negotiating with the operator some time before unexpectedly putting the hospital out for public tender in January this year,” she said.

“The Liberals promised a greater commercial return for Tasmanians and better services at Hobart Private — it’s time they gave Tasmanians the facts.”

The new arrangements are scheduled to begin on December 14 following the end of the current 20-year agreement.

Hobart Private Hospital