A western suburbs hospital that went into voluntary administration in January has been sold.
Amplar Health, which is owned by the Medibank Group, partnered with Seabreeze Healthcare, a consortium of doctors, to purchase Western Hospital following negotiations with administrator Ernst & Young and the state government.
Administrator Robyn Duggan said the sale would ensure the “uninterrupted operation” of the hospital, as well as the continued employment of 190 people.
The state government said it had agreed the private hospital, which will now operate as Western Adelaide Private Hospital, could undertake nearly 4000 elective surgeries from the public health system over three years to boost its workload.
The government will also deliver a $3 million grant over two years to the hospital, supporting changes to clinical services and patient care models as part of a broader investment package from the building’s owner, Australian Unity, alongside Medibank and the doctors.
The hospital will provide short-stay clinical care, focussing on orthopaedics, ophthalmology, general surgery, gastroenterology and more.
Western Hospital first opened in 1974 in Henley Beach on Cudmore Terrace.
Chris Smith, general manager of healthcare property at Australian Unity said it was a “privilege to be part of the next phase” in the hospital’s history.
“We’re pleased to have signed a 20-year lease with Western Adelaide Private Hospital, a joint venture between Medibank and a cohort of doctors to bring expertise, capacity and financial strength to service the community’s health needs for the long-term,” he said.
The Medibank Group’s Robert Read said a “stronger Western will ensure the community can access innovative care models”.
“Our investment in these care models is about driving Australia’s health transition forward for the benefit of patients, providers and the sustainability of the entire health system,” Read said.
Health Minister Chris Picton today said the sale was “excellent news for private patients in the western suburbs”.
“Importantly we will also be working with the hospital to use its spare capacity to help reduce public surgery waiting lists,” Picton said.
The 53-bed acute surgical and medical private hospital offered services including acute care, cardiology, dermatology, gastroenterology, ophthalmology, oncology, physiotherapy and gynaecology prior to the purchase.
Western Hospital, which had run at a loss for several years, secured a $1 million loan from the government shortly before calling in the administrators, and services remained on offer throughout the administration process.