Wakehurst MP Michael Regan, Federal MP for Mackellar Dr. Sophie Scamps and Pittwater MP Jacqui Scruby attended a strike by Nurses and Midwives at Northern Beaches Hospital in NSW on March 24, 2025, as part of a broader series of rolling stoppages at Healthscope hospitals. The strike, led by the NSW Nurses and Midwives' Association (NSWNMA), aimed to pressure Healthscope, the private operator of the hospital, to address issues like staffing ratios, pay, and working conditions. This was the second such action in recent months - another was held on November 5 2024
Key points:
- Independent Wakehurst MP Michael Regan tabled his Northern Beaches Hospital (Voluntary Contract Termination) Bill 2025 in the NSW Parliament on May 8. Long title: 'An Act to provide that no compensation is payable by or on behalf of the State by reason, or on the occurrence, of the voluntary termination by the State of the contract for the operation of the Northern Beaches Hospital; and for related purposes.'
- Healthscope has cited the Minns Government’s intent to stop all PPP (public private partnerships) as part of the reason it has sought to hand back the public part of the hospital prior to the expiration of the contract in 2038
- In November and December 2023, Healthscope wrote to the Ministry of Health requesting to bring forward the return of the public portion of the Northern Beaches Hospital by 14 years while retaining the private portion until 2058
- On April 15 the NSW Government announced 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
- 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
- Under the project deed an early cancellation of the agreement presents costs, which is the avenue Healthscope seems keen to pursue
- The Taskforce will engage with Healthscope management, noting questions of its ownership are yet to be resolved
- Joe’s Law (The Health Services Amendment (PPP Prohibition) Bill 2025) was debated in parliament on Tuesday May 6 (Debate resumed from 27 March 2025) – it has not passed as yet
- Community Forum 'The Future of Northern Beaches Hospital' – is on this Wednesday May 14 at DY RSL, a few tickets left. This is your opportunity to hear directly from: NSW Treasurer the Hon. Daniel Mookhey MLC and NSW Health Minister the Hon. Ryan Park MP
‘’Crucially, we know that the payout to the operator under voluntary termination is a barrier to the New South Wales Government taking the hospital back into public hands.’’ - Michael Regan, MP for Wakehurst, May 8 2025
On Thursday May 8 2025, 10am, Private Members Day, Michael Regan, a member of the Public Accounts Committee inquiry into 'The safety and quality of health services provided by Northern Beaches Hospital', which closes May 20 for submissions, tabled a Private Members Bill, the Northern Beaches Hospital (Voluntary Contract Termination) Bill 2025 in the Parliament of NSW.
Later that day Mr. Regan stated:
‘’Today I moved my Bill, The Voluntary Contract Termination Bill (2025) in Parliament. This comes after we moved Joe’s Law (The Health Services Amendment (PPP Prohibition) Bill 2025) which prevents future Public-Private partnerships in Hospitals. However, our Northern Beaches Hospital is still left under Healthscope - and my bill seeks to remove one of the key barriers to its transition back into public hands.''
In his speech to parliament Mr. Regan stated:
With the new Northern Beaches Hospital, the people of the Northern Beaches were promised the best quality health care. In fact, Healthscope committed to perform in the top quartile of comparator hospitals on many measures. The State would get these superior services at a discount. It sounds too good to be true and it turns out it was. This PPP experiment for acute hospital services for public patients has not worked. The PPP for the Northern Beaches Hospital has been controversial from the start but has come under increasing pressure and scrutiny in recent times.
In particular, the tragic, preventable death of toddler, Joe Massa, has brought this issue to public attention. The Pitman and Atkinson families have also come forward to share their harrowing experience in losing baby Harper due to complications in birth at Northern Beaches Hospital on 23 February this year. I have met with both families and thanked them for their courage and conviction. Since these families came forward with their story earlier this year, the Audit Office of New South Wales has published its performance audit of the hospital. This was a major milestone in the push for greater transparency and accountability of this facility. The report concludes that the public-private partnership is not effectively delivering the best quality integrated health services and clinical outcomes to the northern beaches community and the State, the standard required under the arrangement and the key objective of the project deed.
The report states unequivocally that the partnership is at risk of failure, with Healthscope having come to the Government twice at the end of 2023 requesting to return the public portion of the hospital 14 years ahead of schedule. The Auditor-General found that NSW Health effectively manages the contract with Healthscope but the public-private partnership structure creates tension between commercial imperatives and clinical outcomes. The Auditor-General's report identifies high rates for hospital-acquired complications including elevated levels of falls, third- and fourth-degree perineal lacerations and birth trauma.
Cost cutting can be identified as a major driving factor behind all of these disturbing trends. Trying to make money and provide the highest quality public acute healthcare are fundamentally incompatible. The project deed was also found not to support the hospital's integration into the local health district and broader health network. As the Government rolls out new initiatives, including safe staffing levels, the only public hospital for the 270,000‑plus people on the northern beaches is set to miss out. The formal reporting of an Auditor‑General's report does not and cannot be expected to capture the true human cost of how the PPP model is operating at Northern Beaches Hospital.
Front of mind for me are the people I have met and their stories: nurses, midwives, doctors, security guards and cleaners, all of whom are burnt out and under-resourced, and the families who are traumatised by their treatment at Northern Beaches Hospital. I thank my staff for all the work they have done in listening and talking to these people face to face. The information they have read has taken a huge toll on them, and I thank them for the work they continue to do. Recently I read the submission to the Auditor-General by the staff medical council [MSC], representing over 300 fellowed doctors at the hospital. It is shocking reading. The submission states:
It is the opinion of the MSC that the current resources provided by Healthscope make clinical practice at NBH unsafe to both patients and clinicians, compromises patient care, is unsustainable and is a recipe for wholesale burnout.
I also quote a career nurse who has been at Northern Beaches Hospital since day one. They said:
We leave a shift worrying that we haven't been able to give our best – because there's just not enough staff on the floor. We have minimal support staff, dysfunctional IT systems and nobody performs at their best inside a pressure cooker.
The quality of care that the northern beaches community continues to receive is only because of the dedication and professionalism of the staff working at the hospital. This has come at immense personal cost to them, and we owe them a debt of gratitude. But the reality is that at the Northern Beaches Hospital we are getting cut‑cost health care, and it is not sustainable.
Mr. Regan went on to reiterate that the NBH 'experiment' has shown us that acute hospital services, including emergency departments, should not be run as for-profit operations under PPP arrangements.
''However, the reality is that the PPP prohibition bill does nothing for the people of the northern beaches, who are stuck with a hospital service everyone agrees is suboptimal.'' he said
''The situation with Northern Beaches Hospital is not static. In fact, it is very fluid. This bill responds to the current situation, where Healthscope, under intense financial and public pressure, has come to the Government requesting to return the hospital to public hands. ... it is crucial that the Parliament acts to remove barriers to fixing this mess.
That is what this bill does. The Northern Beaches Hospital (Voluntary Contract Termination) Bill 2025 provides that no compensation is payable by the State to Healthscope on the voluntary termination of the contract by the State. In doing so, it seeks to remove the key barrier to the voluntary termination of the contract by the State.'' Mr. Regan stated
He said:
''Healthscope has been very careful to specify that they want to hand back the hospital "under the provisions of the deed". Under the project deed there are two ways to terminate the Northern Beaches Hospital contract: one, operator default termination, or two, voluntary termination. The operator default termination would occur if the conditions of the deed had been breached. There is not clear evidence for that and, in any case, it would be a very lengthy and contested process. Of that I have no doubt. The voluntary termination option says that the State will pay to the operator the voluntary termination payment in respect of the project in accordance with the termination payment schedule. The voluntary termination payment schedule is schedule 12 to the deed and is not publicly available. However, we know that Healthscope is very keen to terminate the agreement on this basis.
Healthscope's chief executive has said the company does not expect to profit by handing over its Northern Beaches Hospital to the Government but is reported as admitting "removing its most troubled asset from its portfolio of 38 facilities helps pave the way for a sale of the debt-laden company".
It is important to keep in mind that Brookfield, the owner of Healthscope and one of the biggest private equity firms in the world, has over $1 trillion of assets under management. It could choose to inject more funds into Healthscope but has not. We know that the New South Wales Government owns the land and contributed $600 million to the build. No other details about ownership of the physical assets are public.
Crucially, we know that the payout to the operator under voluntary termination is a barrier to the New South Wales Government taking the hospital back into public hands. The bill removes this barrier by specifying that no compensation will be payable on the voluntary termination of the contract by the State. In doing so, it moves us a step towards what the people of the northern beaches deserve and what the staff at the Northern Beaches Hospital deserve—a not‑for‑profit local public hospital.''
Mr. Regan's full speech is available in full in Hansard.
A large number of residents tuned in to listen to the MP for Wakehurst's speech. The debate was adjourned 5 clear days. The Bill lapses in accordance with Standing Orders on 08/11/2025.
No response from Healthscope has been made officially available as yet, as, as already stated, a Northern Beaches Hospital Taskforce was established by the Minns Government on April 15.
This is examining the future of the 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 has stated 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 then:
“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."
Manly MP James Griffin, who contributed to the second reading debate for 'Joe's Law' on Tuesday May 6 2025, spoke in support of the Bill, stating:
'' .... we are here because of the effort and the tenacity, albeit in tragic circumstances, of the Massa family. Many of us on both sides of this Chamber acknowledge their effort in working as hard as possible so that the tragedy they experienced does not happen to anybody else in New South Wales. We hope, through the good work of many members in this place, that no‑one will ever have to experience that again. For those reasons, I support the bill.''
Pittwater MP Jacqui Scruby, who also spoke in support of the Health Services Amendment (PPP Prohibition) Bill 2025, 'Joe's Law', stated:
''.... Public‑private partnerships may have their place in infrastructure delivery. They can work for toll roads or for stadiums, but not for public hospitals and acute care. Health care is not a commodity. It is not a service that should be rationed or optimised for shareholder returns. It is an area where a "good deal"—or a "very good deal"—results in chronic underfunding and compromised care. When profit and commercial key performance indicators become motives in the delivery of acute healthcare services, it ultimately puts lives at risk. The Northern Beaches Hospital privatisation was sold to our community as an efficient and fiscally responsible model that would deliver better health care for my community and constituents, but many in my community have not experienced that.
When we lost Mona Vale Hospital, and then Manly Hospital, we had a strong community movement standing up to fight to save Mona Vale Hospital. There were always concerns in our community about the public‑private model. People in my community fought hard to resist it. They have been disappointed in the new location of the hospital, which for some in Palm Beach is an even longer commute and so puts lives at risk when travelling by ambulance. They have also been disappointed by fewer beds, a broader catchment area and a lack of services such as stroke, cardiothoracic surgery and neurosurgery. It is a hospital that continues to be mired in controversy, often underperforming where it matters most: patient outcomes, access and transparency in the agreements.
''... The Massa family lost their son, Joe, and I acknowledge their courage and bravery in drawing attention to those tragedies in the media. Since then, the Atkinson family have come forward about the loss of their baby, Harper. Before that, the Gill family lost their son, Joshua, and the Wilcock and Hogg families had their beloved Sophie suffer a traumatic brain injury. The other day I helped a lady cross the road who had suffered a stroke that Northern Beaches Hospital did not diagnose for many days.''
Constituents have written to me and to the Auditor‑General, and have made submissions to the current parliamentary inquiry, with story after story about how the hospital has failed them.... I acknowledge all the people who have stood up to share their stories, and I encourage more people to share their stories with the current parliamentary inquiry.
I also acknowledge the member for Wakehurst and Federal members Dr Sophie Scamps and Zali Stegall for standing up and calling for greater transparency, and particularly for calling for the recent inquiry by the New South Wales Audit Office, which released its report a couple of weeks ago. The member for Wakehurst and I also called for the public inquiry that is now underway. However, as the report reveals, the more that is uncovered, the more questions are raised. The inherent complexities of a public-private partnership and the delivery of health care through that model have been brought to the fore.
The member for Wakehurst referred to the submission of the Medical Staff Council of the Northern Beaches Hospital, which highlighted that the lack of funding resulted in some of the discrepancies against the benchmarks for public hospitals. I note again the inconsistency with the audit report, which found that the hospital is clearly failing the people of the northern beaches and is not performing against the deed, although it is outperforming on some benchmarks compared with other public hospitals. However, the report highlights that some of the key performance indicators and data management are somewhat lacking and there is inconsistency in the data, which is currently under further investigation. The Medical Staff Council also brings that up.
The Medical Staff Council submission notes discrepancies in staffing numbers, which impact on emergency department waiting times, quality of care and burnout amongst staff; discrepancies in the services offered compared with other public hospitals, such as cardiothoracic surgery, neurosurgery and stroke; discrepancies between medications and doses of medications available to hospital patients at Northern Beaches Hospital compared with other hospitals in the local health district; and huge deficiencies in oncology and nephrology staff. Even the choice of consumable equipment in Northern Beaches Hospital is limited compared with the public sector.
The list goes on and on, and the council feels that the staff are left to pick up the slack. There are huge complaints around staffing and the risk of burnout. The staff continue trying to provide quality service while they are restricted by the funding and management of Healthscope. All of those things perfectly illustrate the complexities that arise from a public-private partnership. There have also been legal battles. Those complexities, the lack of transparency and the inherent conflicts about efficiency—with profits put ahead of patients—illustrate why we can no longer have public-private partnerships in health care.
I support the bill and my community supports the bill. It is a remedy not only for our hospital but for all hospitals going forward. At least now there is a line in the sand. We cannot bring back the lives lost, but the families that have stepped forward have created change in New South Wales. I, my community and many members in this place thank them for that. ... I commend the bill to the House and call for an end to public-private partnerships in health care.''
Several other MP's spoke in support of 'Joe's Law'. These addresses may be read in Hansard.
The NSW Government Inquiry into the Safety and Quality of Health Services provided by the Northern Beaches Hospital open.
Submissions close May 20 2025. The webpage to upload these is HERE.
The Community Forum 'The Future of Northern Beaches Hospital' – is on this Wednesday May 14 at Dee Why RSL, with a few tickets left. Hosted by Pittwater MP Jacqui Scruby and Wakehurst MP Michael Regan, the forum will also hear from NSW Treasurer the Hon. Daniel Mookhey MLC and NSW Health Minister the Hon. Ryan Park MP.
Wakehurst MP Michael Regan and Pittwater MP Jacqui Scruby stood with NBH Nurses and Midwives during work stoppages. Photo: NSW Nurse and Midwives Association