The Perth hospital takeover and the surprise shutdown that has nurses concerned

A question mark has hung over Perth’s Mount Private Hospital since its operator, Healthscope, entered into receivership more than 12 months ago.

The 170-bed facility on Mounts Bay Road played an important role in offering specialist surgeries – particularly cardiac surgery – and, with WA’s healthcare system already under strain, any reduction in capacity had the potential for flow-on impacts elsewhere.

That was until WA Labor assumed the role of dealmaker, brokering a takeover by Bethesda Health Care – unveiled in May – that would see the hospital continue its operations, with existing staff to be offered jobs with Bethesda.

However, WA’s peak nursing union now fears staff at Mount Private Hospital will not be paid their appropriate wages and entitlements during a previously unannounced shutdown of the site, beginning Monday, and will instead be forced to use their annual leave.

A Mount Private Hospital spokesperson confirmed the site would undergo a planned shutdown from July 6 to 13 July to upgrade the centre’s fire system, which is considered critical infrastructure.

“Due to nature of the works program which includes significant crane lifts, no staff, patients or doctors will be able to be on site during the shutdown,” the spokesperson said.

“We have worked closely with our staff and doctors to prepare for this important work, ensuring all patients are safely discharged and transferred ahead of time and that we will be able to welcome staff and patients back to site from the 14th of July.”

But Australian Nursing and Midwifery Foundation WA state secretary Romina Raschilla said the shutdown had caused stress and financial burden for the organisation’s members.

“In June, the ANMF WA lodged two disputes with the Fair Work Commission following information from Healthscope that Mount Private Hospital employees would not be paid their appropriate wages and entitlements during a nine-day scheduled shutdown of the hospital,” she said.

“Instead, encouraging staff to take annual leave or unpaid leave for the shutdown period.

“Hospitals are a 24-hour, seven days a week, 365 days per year operation.

“The Mount Private Hospital has remained open during scheduled maintenance previously, including major redevelopment works in 2023, so it is disappointing to see other options were not considered over a closure.”

In a previous media release issued at the announcement of the Bethesda takeover, a Healthscope spokesperson said hospital operations will transfer to Bethesda by the end of August, subject to a prior period of due diligence.

“Mount Private will continue its current operations, services will not be affected, and hospital jobs and entitlements will be protected,” the release stated.

Earlier this year, it was announced that Healthscope lenders had approved a plan that would keep the nation’s second-largest private hospital operator intact as a not-for-profit operation following its financial collapse last year after private equity owners walked away.

Late last year, the receivers sold Canberra-based National Capital for $251 million to Ramsay Health, and also found buyers for Gold Coast Private, Victoria’s Holmesglen Private and Hobart Private Hospital.

A WA government spokesperson said Bethesda was undertaking final due diligence before it formally takes over operations of the Mount Hospital by the end of next month, but was unaware of any planned shutdowns at the site.

“While final due diligence and regulatory approvals are being finalised, the terms of the deal remain commercial in confidence,” the spokesperson said.

“We have been advised there will be no interruptions to services as part of the transition from Healthscope to Bethesda to maintain continuity for patients and staff.”

In a statement, Bethesda said a standard due diligence process is underway, which includes reviewing infrastructure, engineering systems and overall compliance with regulatory and accreditation requirements.

“Like all hospitals, The Mount operates within a cycle of ongoing maintenance, renewal and upgrade works, so any items identified are considered within those normal asset management processes rather than a one-off ‘bring up to code’ program,” the not-for-profit health care company said.

“Hospitals undertake rolling infrastructure upgrades as part of normal operations to ensure facilities remain safe and fit for purpose.

“Once Bethesda assumes operations, ongoing infrastructure investment will be managed by us as part of our standard capital planning approach.

Bethesda told this masthead that Healthscope had advised that it is undertaking a shutdown in July as part of its own operational arrangements.

“This is separate to, and occurs prior to, any commencement of Bethesda’s transition later this year,” the company said.

“Due diligence does not require the hospital to close. The shutdown will occur whilst the current operator Healthscope manages the hospital.”

A Mount Hospital spokesperson said the centre sought to minimise the impacts on staff by ensuring the works coincide with school holidays, a traditional low activity time and when a high number of employees would be normally on leave.

“Employees have been given the option to take a range of leave entitlements during the shutdown and have also been offered additional hours both before and after the shutdown,” the spokesperson said.

Raschilla said the ANMF WA would continue to advocate for its members and nurses at the Mount Private Hospital.

“The temporary shutdown has caused stress and financial burden for our members and employees at the Mount Hospital, while putting pressure on patients who may have to delay health care and surgery due to the shutdown, during an already busy period for our WA hospitals,” she said.

“I look forward to a resolution.”