A Northern Beaches Hospital Taskforce will examine the future of the disastrous privatisation deal, including owner Healthscope's compliance with its obligations under the contract.
NSW Treasurer Daniel Mookhey ordered the Taskforce to begin an immediate investigation into the continuing operation of the public private partnership, which was signed in 2014 and runs until 2038.
The Minns Labor Government was notified by Healthscope late last week that it wished to hand back the public hospital at Frenchs Forest to the NSW public system.
With growing uncertainty over Healthscope's financial future, the NSW Government has been clear that any exit proposal must not result in a windfall gain at the expense of the people of NSW.
The Taskforce will engage with Healthscope management, noting questions of its ownership are yet to be resolved.
Patients can be assured that there will be no impact on health services at Northern Beaches Hospital while the Taskforce does its work.
The Taskforce, comprising of Treasury, NSW Health and the Cabinet Office, will report back to Government.
Treasurer Daniel Mookhey said:
"I'm not prepared to sit and wait on this. I want to know the options now, so we are prepared for any negotiations. That's why I've directed the Taskforce to begin work immediately.
"We are not going to allow private equity owners of the public hospital to make a windfall gain in a going out of business sale.
"The Liberals' privatisation deal at Northern Beaches Hospital will be remembered in history as an epic failure."
Health Minister Ryan Park said:
"We never would have entered this arrangement and it's clear the community isn't satisfied with this model.
"I understand the community's impatience, and I recognise the community deserves certainty.
"It's important we get this right and this taskforce is a critical first step in untangling a complex transaction left by the previous Liberal Government."
