Healthscope, Australia's second largest private hospital provider, has publicly argued that current government revenue settings render several of its business lines unsustainable, signaling a push for revised healthcare funding models.

On May 26, 2025, Healthscope, Australia’s second-largest private hospital operator, was placed into receivership by its Canadian-based private equity owner Brookfield due to unsustainable debt of $1.6 billion. The collapse, which resulted in two preventable deaths and widespread criticism from unions and health experts, highlights the dangers of profit-seeking practices in healthcare and calls into question the viability of privatized health services.

Healthscope, Australia’s second-largest private hospital operator, has entered receivership with its lenders appointing a restructuring firm, while management reassures that all 37 hospitals will continue operating normally with no redundancies affecting its 19,000 staff. This move comes amid a financial crisis and a broader strategy to secure the company’s operations during the sale process.

Healthscope, one of Australia’s largest private hospital operators, has been found to underpay its staff by an estimated $21.7 million. The issue, affecting approximately 500 employees including disability support workers and nurses, was disclosed in a report to ASIC. The company has engaged external advisers and is making remediation payments while the matter is under investigation by the Fair Work Ombudsman and the Fair Work Commission.

A report revealed that Healthscope, Australia's second largest private hospital provider, owes approximately $21.7 million in historic underpayments affecting around 500 health and disability service workers. The company disclosed the issue in its financial reporting, acknowledged misclassification errors in its payroll system, and has initiated remedial payments while working with PwC to identify affected employees. The matter is under investigation by the Fair Work Ombudsman and is being addressed in consultations with relevant unions.

Healthscope donated nearly $75,000 to the Tasmanian Liberals over seven years, with the contributions falling below the state’s disclosure threshold. The lack of transparency in these political donations has sparked calls from opposition and reform advocates for more robust disclosure laws.

In May 2017, Healthscope published its Supplier Code of Conduct, outlining strict ethical requirements for suppliers, including prohibitions on modern slavery, forced or child labour, and commitments to uphold human rights and environmental standards. This move reinforces Healthscope’s dedication to ethical supply chain management and responsible labor practices.

In May 2017, Healthscope issued a Supplier Code of Conduct outlining rigorous standards for suppliers, including adherence to modern slavery laws, respect for human rights, prohibition of forced labor, and the promotion of fair labor practices and environmental responsibility.