Impairment lodged: It’s business as usual at Frankston Private Hospital despite the closure of two Healthscope hospitals elsewhere. Picture: Yanni
MAJOR private healthcare provider Healthscope has flagged financial performance problems at Frankston Private Hospital while closing its private hospitals in Geelong and Cotham.
Healthscope lodged a statement with the Australian Securities Exchange (ASX) on 22 May announcing the closure of Geelong Private Hospital and Cotham Private Hospital after a review of its “portfolio of 45 hospitals” found the two hospitals are “not viable”.
The statement from Healthscope CEO Gordon Ballantyne also advised the market that “an impairment relating to Frankston Private Hospital” is also being recorded.
Healthscope’s 2018 financial results will include “a non-operating impairment charge” of about $68 million, “relating to asset write-downs and an onerous lease provision associated with Frankston Private Hospital”.
“The performance of Frankston Private Hospital has been well below expectations with occupancy rates well below the business plan,” Healthscope stated.
“Healthscope has explored a range of options to improve the performance of Frankston Private Hospital, including repurposing part of the site. None of these options are likely to deliver the improved financial performance required to support the lease obligations, which were entered into in FY14.”
Frankston Private Hospital was officially opened in March last year by federal Flinders Liberal MP Greg Hunt, now federal Health Minister, after Healthscope acquired and amalgamated the Frankston Private Day Surgery and Peninsula Oncology Centre.
Mr Hunt told Jon Faine on ABC Melbourne radio last Wednesday (23 May) that “states are harvesting private patients for the public hospitals”.
“It reduces the capacity of the private sector to support themselves and it also blows out waiting lists for public patients, often those with less income, in public hospitals,” the federal Health Minister said.
Mr Hunt said he hopes Frankston Private Hospital can be successful.
“In the case of Frankston, I’m very hopeful, that’s a brand new facility only opened a few months ago, that that will build up,” he said.
“So that’s a start-up, as it were, a new facility. And I think that that’s providing tremendous service locally.”
More than 400 jobs have been lost as a result of the Geelong and Cotham private hospital closures to be finalised in a month’s time.
Frankston Private Hospital is a 60-bed hospital with five surgery theatres and an oncology centre, employing 108 staff.
First phase: Jason Francis and Dr Vinod Ganju at Frankston Private Hospital. Picture: Supplied
Cancer trials are ‘ground breaking’
PATIENTS from across Australia are travelling to Frankston Private Hospital to take part in new cancer trials targeting bowel cancers.
Senior oncologist Dr Vinod Ganju is leading an Australia first clinical trial of drug delivery using nanocells to treat tumours by stimulating a body immune response against damaged tumour cells.
The first patient in phase 1 of the trial that started in April is Jason Francis from Newcastle in New South Wales.
He previously tried conventional chemotherapy but suffered complicated side effects.
“I feel very privileged to be a part of this ground breaking trial, it gives me targeted treatment without feeling so sick from the chemotherapy” Mr Francis said.
“I hope that by participating in this trial I can add to the body of knowledge around bowel cancer treatment, taking us one step closer to a cure in the future.”
