HospitalsHudson FarrMon 28 Sep 26
Calvary Consortium Confirmed as Healthscope Buyer
A Calvary Health Care-led consortium has been confirmed as the buyer of Healthscope’s remaining hospital operations, closing out a 16-month receivership process and clearing the way for the group’s property owners to finalise new leases across a $1.3 billion hospital portfolio.
Under the deal announced this week, Australia’s second-largest private hospital group would be divided between four operators: Calvary will run 14 of Healthscope’s 25 remaining hospitals, Pacific Equity Partners-backed Healthe Care will take six (including Sydney’s Prince of Wales Hospital and Melbourne’s Knox Private Hospital), Acurio Health, three, and KnG Group, two facilities.
Receivers McGrath Nicol said the arrangement, which was expected to complete by November 30, 2026, protects about 14,000 frontline jobs and continuity of care for 500,000 patients.
Healthscope fell into receivership in May 2025 after Canadian owner Brookfield withdrew financial support, leaving the group with more than $1.6 billion in debt.
Lenders were expected to recover about 40 cents in the dollar. The Calvary consortium reportedly had to lift its offer by $60 million in recent weeks to lock in lender support, seeing off a rival not-for-profit restructuring proposal from PurposeCo.
HMC Capital’s ASX-listed HealthCo Healthcare & Wellness REIT (HCW), together with its associated Unlisted Healthcare & Life Sciences Fund, is landlord to 11 of the affected hospitals.
The portfolio was acquired from Medical Properties Trust in 2023 for about $1.2 billion at a 5.7 per cent capitalisation rate and is now valued at approximately $1.3 billion.
HCW wholly owns four of the assets—Northpark Private Hospital, the Victorian Rehabilitation Centre, Geelong Private Hospital and Pine Rivers Private Hospital—while the remaining seven sit within the unlisted fund, in which HCW holds a 49.6 per cent interest.
Lenders have now approved the transfer of 10 of the 11 hospitals to new operators; a separate new lease for Perth’s Mount Private Hospital is scheduled to begin in October.
HMC Capital expected pro-forma net tangible assets to remain broadly in line with June figures once new leases were executed, subject to final approvals.
NorthWest Healthcare Properties, a separate healthcare property investor, is also named as a supporter of the Calvary-led proposal. The scale of its exposure to the affected hospitals has not been disclosed.
HCW moved to rent deferral arrangements with Healthscope in early 2025 as the operator fell behind on payments, later flagging legal action over arrears before the business entered receivership.
At the height of the crisis, more than half of HCW’s portfolio was weighted to private hospitals, and analyst ratings on the stock had been held pending resolution of Healthscope’s ownership.
The 10-hospital transfer remains subject to customary regulatory and lender approvals before completion. Calvary separately gained control of Hobart Private Hospital last month, giving it every private overnight hospital in Hobart and Launceston, and acquired Holmesglen Private Hospital in Melbourne’s south-east in December.
