With debt deadlines looming and rumours of buyout offers circling, the private hospital operator has got on the front foot.
Embattled private hospital operator Healthscope has made huge changes at the top of its organisational tree, replacing both its CEO and board chair at a critical moment in its fight for survival.
Greg Horan has been replaced as CEO by former Qantas and Boral executive Tino La Spina. Chair Len Chersky will be handing over to Canadian asset management giant Brookfield executive Sophia Rihani, who is already a member of the board.
Brookfield bought Healthscope in 2019 for $4.1 billion.
In March Healthscope faces the probability of breaching debt covenants on loans worth $1.6 billion. In November 2024 lenders gave the company an extra five months in order to facilitate funding arrangement negotiations with private health insurers. That grace period expires at the end of next month.
And this week it has become clear that various consortiums, including possibly – according to the Australian Financial Review – Ramsay Health Care, and – according to The Australian – Bupa, are circling with a view to taking over the 11 Healthscope hospitals operated by HealthCo Healthcare and Wellness REIT.
At the end of January, Bupa and Healthscope ended a four-month long feud, signing a new funding arrangement.
Healthscope operates 38 hospitals in total, including Sydney’s Northern Beaches Hospital, Gold Coast Private Hospital, Brisbane Private Hospital, and Melbourne Private Hospital.
In a memo to staff, quoted by the AFR, Mr Chersky announced Mr Horan’s departure.
“Greg became CEO following covid, and his leadership was crucial in stabilising the business and setting it up for the long term,” Mr Chersky was quoted as saying.
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“He has overseen significant improvements in staff safety, turnover, patient experience, operational efficiency and in our commercial arrangements with insurers.”
Mr Horan will remain in the role while the handover to Mr La Spina is completed in coming weeks, and will then resume his previous role as managing director in Brookfield’s private equity group. Mr Chersky will also return to his duties with the same group.
“During this time, Tino will be visiting as many of our hospitals as possible, getting to know our operations and meeting staff and [visiting medical officers],” Mr Chersky was quoted as saying.
Mr La Spina was a financial advisor for GenesisCare until his appointment as Healthscope CEO. Prior to that he spent almost two years as CFO of Boral, and before that he spent 14 years with Qantas, culminating in just over a year as its international CEO.
Ms Rihani has spent the past 11.5 years with Brookfield Asset Management, most recently as managing director. In 2023 she spent five months as Healthscope’s acting CCO.
HSD reached out to Healthscope and Ramsay Health Care for comment on this story.