The NSWNMA is fighting to protect the jobs and entitlements of members employed by Healthscope hospitals.

The future of Healthscope remains in doubt after it went into receivership in May with $1.6 billion in debt.

Healthscope is Australia’s second largest privately owned hospital operator.

It was previously owned by the giant Canadian-US private equity company Brookfield, which loaded up Healthscope with debt as it repatriated profits back to investors.

Brookfield then placed its distressed business on the market, before handing Healthscope over to their lenders and exiting the company entirely.

As part of creating a competitive sale process, one of the options currently being proposed by the current management is to restructure Healthscope into a not-for-profit company which, they say, would save money on payroll and land tax and help retain its network of 37 hospitals.

In an email to staff in September, chief executive Tino La Spina said Healthscope had received offers for some of its hospitals but could not find a buyer for the company as a whole.

He said turning Healthscope into a not-for-profit company could avoid Healthscope being broken up with some hospitals “stranded without a buyer” and closed.

He said the not-for-profit proposal “gives us the best chance to keep our hospitals together and minimise the risk of closures and job losses.”

La Spina also made a pitch to staff to adopt a salary packaging proposal, which he said was necessary to enable Healthscope to make tax savings and secure not-for- profit status.

The current salary packaging proposal would see 90 per cent of the benefits of a salary package program go to the company and 10 per cent to employees.

DOUBTS ON SALARY PACKAGING PROPOSAL

As The Lamp goes to print, Healthscope is proposing to ask all staff nationally to vote on a n a mend mention to their enterprise agreement to introduce salary packaging.

NSWNMA General Secretary Shaye Candish said Healthscope had asked all ANMF branches to support the not-for-profit proposal.

She said that in NSW, given Healthscope has indicated plans to incorporate the salary packaging proposal into a vote on the long- delayed EBA as a whole, any response must be considered very carefully.

“At this point, Healthscope executives have not provided enough detail on what the salary packaging structure would look like,” she added.

In an email to members, Shaye said, “Throughout this administration process, your union has been fighting to secure your jobs and entitlements, regardless of who the ultimate new owner/s of Healthscope facilities are.”

“We continue to lobby (federal and state governments) to intervene and support jobs and the delivery of patient care to the community.”

Shaye said it was not certain the not-for-profit proposal would receive regulatory approval from the Australian Charities and Not- for-profits Commission and the Australian Taxation Office.

“Healthscope will also need to satisfy lenders that its (not-for- profit) proposal is financially viable, and likely to result in the repayment of debts and/or a return on investments,” she added.

She said it was unclear what would happen if Healthscope failed to get the necessary regulatory approvals and support from lenders.

“In the worst-case scenario of a hospital or hospitals closing, your union is working to secure your pay and entitlements, and government support for employees impacted by any closures.”

‘Respectful and constructive’ talks on pay agreement

NSWNMA officials and Healthscope have discussed the possibility of reaching an agreement as an alternative to continuing Fair Work Commission proceedings on back pay and pay increases for Healthscope nurses and midwives.

Shaye said Healthscope agreed to consider a series of union proposals at a “very respectful and constructive” meeting on 24 September.

“These proposals included an earlier date for the payment of back pay, and maintenance of existing annual leave provisions.”

She said meetings of members and organiser visits to hospitals had shown that members’ priorities were to secure back pay and entitlements as soon as possible.