Healthscope seeks landlord agreement to preserve Australian private hospital chain

Australia's second‑largest private hospital operator, Healthscope, is negotiating with its landlords to avert a break‑up by private‑equity investors. Board veteran Helen Nugent is leading a bid to convert Healthscope into a not‑for‑profit entity, dubbed PurposeCo, which would eliminate about $100 million in annual payroll tax and address the $1.7 billion debt owed to lenders and receivers.

Nugent plans meetings with Healthco boss Sid Sharma and Canadian landlord Northwest Healthcare to renegotiate onerous lease terms that contributed to Healthscope's recent financial collapse. A rival non‑binding offer from the Pacific Equity Partners consortium has also been presented, but lenders have indicated a preference for the PurposeCo proposal. A final binding offer is expected shortly.