The Northern Beaches Hospital’s shift to public ownership is nearing its conclusion, with in-principle agreement reached with Healthscope’s receivers on a $190 million payment for the transition.

The milestone marks the final phase in the NSW Government’s promise to rectify one of NSW’s worst privatisation experiments, while minimising the impact on taxpayers. 

This follows months of negotiations between the NSW Government, Healthscope and its receivers, and will see the hospital move to the direct control of the Northern Sydney Local Health District by mid-2026.

Under the agreement:

• The entire 494-bed hospital will return to public ownership
• All clinical and support staff currently working at Northern Beaches Hospital will be offered jobs by NSW Health at the facility, and
• Staff entitlements will transfer across from Healthscope to NSW Health.

The NSW Government will now finalise the legal and commercial arrangements required for transfer, including workforce transition. 

It will also consult closely with clinicians to determine future clinical services and an operating model, including the role of private services in the hospital footprint.

Elouise and Danny Massa, the parents of two-year-old Joe Massa who died at the hospital late last year, have been tireless advocates for the facility being brought into public hands.

Their efforts led to the passing this year of Joe’s Law, a legal commitment by the NSW Government to prevent any future attempts to create public-private partnerships at acute care hospitals. 

Independent MPs Michael Regan, the Member for Wakehurst, and Jacqui Scruby, the member for Pittwater, have also been strong campaigners in their local community for reversing one of NSW’s worst examples of privatisation.

A report by the Auditor-General this year found that the former government’s privatisation model did not allow Northern Beaches Hospital to deliver adequate health services. It found it:

• Prevented Northern Beaches Hospital from being properly integrated into the public health system, impacting access to services for patients in the area, and
• Created tension between profit motives and health outcomes.

Northern Beaches Hospital was one of six hospital privatisations attempted by the former Coalition. The five others – Maitland, Wyong, Goulburn, Shellharbour and Bowral – did not go ahead. 

The state government still retains the option to use its statutory powers to terminate the Public Private Partnership unilaterally if Healthscope fails to conclude the deal on fair and reasonable terms.

Premier Chris Minns said, “We’ve reversed one of the worst decisions of any NSW Government, where a private hospital model was foisted on the people of the Northern Beaches.

“Our state’s acute hospital services that provide lifesaving care to the people of New South Wales should not be privatised and thanks to this decision, no hospital in NSW will be.”

“Because of Elouise and Danny’s courage and persistence, Joe’s Law now ensures that no future government can repeat the mistakes that led to the Northern Beaches Hospital privatisation. Their advocacy will leave a lasting legacy for every patient and every family who relies on our public health system.”

Treasurer Daniel Mookhey said, “This agreement delivers what the Northern Beaches community has been calling for – a publicly run hospital that puts patients before profit.

“At $190 million, this agreement represents strong value for money and is an excellent result for the community.

“The Government has been clear all along that there will be no windfall gains for Healthscope or its investors at the expense of NSW taxpayers. This deal makes good on that commitment.”

Minister for Health Ryan Park said, “We have done in a matter of months what would have otherwise taken years – undoing one of the most complex privatisation arrangements in the state’s history.  

“We have worked with an urgency and speed to provide certainty for the community, patients and staff. We thank the staff for their hard work and cooperation as we continue to work through the transition.

“This agreement does not mark the end – but the beginning – of the transition of a major hospital into the public health system. 

“I want to be upfront that this will not be without its challenges, but patient safety sits at the very heart of this handback to public ownership.

“Let me be clear, clinical and support staff will have the opportunity to continue to work at Northern Beaches Hospital and will be offered employment with NSW Health.”