Australias second-largest private hospital group Healthscope goes into receivership amid debt concerns [Video]

Healthscope, the private operator behind the troubled Northern Beaches Hospital, has gone into receivership after its lenders withdrew support for the current owner.

The major private health group confirmed the news on Monday, saying its lenders have appointed McGrathNicol Restructuring to oversee the sale of the company’s assets as they seek to recover their loans.

Owned by Canadian asset management giant Brookfield, Healthscope is Australia’s second-largest private hospital group, now burdened by $1.6 billion in debt.

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The receivership applies only to Healthscope’s non-operating parent entities, with hospital operations continuing unaffected.

Healthscope’s management team, led by CEO Tino La Spina, remains in place to oversee daily operations.

Spina assured the move will not affect hospital operations or patients, citing the current cash balance and additional funding.

“All 37 of our hospitals continue to operate as normal and today’s appointment of receivers, including the additional funding, ensures a stable path to a sale, with no impacts on any hospitals, …