Healthscope Explores Sale Amid De bt Crisis After Securing Lender Relief

Healthscope, Australia’s second-largest private hospital operator, is exploring a potential sale after securing temporary relief from its lenders to address mounting financial challenges. Owned by Brookfield since a $4.4 billion acquisition in 2019, the company faces a $1.6 billion debt burden exacerbated by rising medical costs and struggles to secure higher reimbursements from health insurers.

The company has entered short-term forbearance agreements with most of its senior lenders, granting it until May to explore long-term solutions, including a possible sale. According to the Australian Financial Review, Healthscope will also engage in restructuring discussions with key stakeholders as part of the agreement.

Financial pressures have intensified, leading to missed rent payments and growing concerns about the company’s stability, The Australian reported. Potential buyers, including HMC Capital, are reportedly evaluating an acquisition, though no formal offers have been made.

The outcome of Healthscope’s restructuring efforts could have a significant impact on Australia’s healthcare sector. Industry watchers and stakeholders are closely monitoring developments as the company navigates its financial challenges.