Queensland’s private hospital group, Mater Health, has successfully acquired Gold Coast Private Hospital from Healthscope, which has been in receivership since last year. This acquisition is part of Healthscope’s efforts to divest its hospital portfolio, which includes 37 hospitals currently managed by receiver McGrathNicol. The financial details of the transaction have not been disclosed.
Mater Health is the largest Catholic not-for-profit hospital group in Queensland and a significant provider of maternity services across the state. The Gold Coast facility, which boasts 331 beds, is among Healthscope’s largest hospitals. Mater’s chairman, Patrick Brady, emphasized that this acquisition ensures long-term employment stability for the hospital’s 1,400 staff members and guarantees the continuation of private maternity services at the Southport location.
Strategic Expansion in Healthcare
Brady explained that the costs associated with constructing new hospitals are substantial. For instance, Mater’s upcoming Springfield hospital is projected to cost over $450 million and is approximately half the size of Gold Coast Private Hospital. Therefore, the acquisition is viewed as an exceptional strategy for expanding Mater’s operations.
Gold Coast Private Hospital was initially built at a cost of $230 million and underwent a further expansion costing an additional $50 million in 2018. The timing of this acquisition aligns with broader trends in the healthcare sector, where established providers are looking to consolidate and expand their services amid changing market dynamics.
In recent developments within the sector, Ramsay Health Care agreed to purchase another hospital for $251 million, while Calvary acquired both the Hobart Private Hospital and Holmesglen Private Hospital in Melbourne. Additionally, last year, Healthscope’s receivers reached an agreement to return a 494-bed facility to the New South Wales government in a deal valued at $190 million.
The acquisition of Gold Coast Private Hospital by Mater Health represents a significant move in the healthcare landscape, reinforcing the organization’s commitment to enhancing healthcare services in Queensland while addressing the challenges posed by the current economic environment.
