Healthscope, a major provider of eye surgeries and one of the country’s private hospital groups, has entered administration.
The company itself and federal health minister Mr Mark Butler announced the news on 26 May 2025. He said it “will be highly distressing to the patients, staff and local communities that depend on Healthscope’s services” and has ruled out the prospect of a bailout.
Healthscope, which lists 44 ophthalmologists working within its facilities, is owned by North American private equity group Brookfield and runs 37 private hospitals across Australia, making it the nation’s second-largest private hospital group.
The network has been in the spotlight after a recent stoush with Bupa and Australian Health Service Alliance, with Healthscope announcing it would charge out-of-pocket costs to policyholders with these health funds and threatening to terminate contracts with them before reaching new agreements.
Healthscope stressed in a press release that its parent entities have entered receivership, with its lenders appointing McGrathNicol Restructuring to work with Healthscope management to complete an orderly sale of the business. The operational business, which runs the hospitals, is not in receivership.
“McGrathNicol’s intention is to transition all hospitals to new ownership, with no plans for hospital closures or redundancies. They will undertake an immediate review of the sale process to date, with a view to re-engaging with interested parties in the coming weeks,” a statement said.
McGrathNicol have been provided with a new $100 million funding package by Commonwealth Bank of Australia to support operations during the sale process.
This is in addition to Healthscope’s current cash balance of $110 million, and substantial additional asset backing across the group. Healthscope’s existing working capital financier is also providing support.
Butler – there will be no bail out
While Healthscope has announced it will remain operating as normal with no change to patient care or staffing, Butler said it would still be difficult for the hospital’s employees, and their patients.
“As Healthscope have today stated if you have a planned procedure in one of their hospitals it will go ahead,” he said.
“Throughout this process the government has been meeting regularly with Healthscope and we have clear expectations the hospital group, lenders, and landlords to act cooperatively and deliver the least disruptive outcome for patients, staff, and the broader health system.”
Today, the Federal Government has met with the administrator and the receiver to outline our priorities and expectations.
“The government expects all parties to continue to put patient care and workers as their priority. We expect that these hospitals remain a critical part of our healthcare system,” Butler said.
“The government does not want any of these important assets to be put in jeopardy to satisfy international investors.”
Butler insisted there “will be no taxpayer bailout”.
“We remain steadfast in our view that an orderly sales process that maintains the integrity of the entire hospital group will provide the best outcome for patients, staff, landlords and lenders,” he said.
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