Calvary Health Care is set to acquire 16 assets from the collapsed private hospital operator Healthscope, with plans to potentially divest or transfer some facilities over time. The not-for-profit Catholic healthcare provider, backed by a syndicate of five to ten financiers, will take control of 14 hospitals, supplementing the two Healthscope facilities it purchased earlier this year: Holmesglen and Hobart Private Hospitals.
The acquisition, overseen by the Healthscope receivership firm McGrathNicol, is expected to finalize by the end of November. Funding will be sourced through a combination of debt and equity, with speculation that Calvary leveraged real estate from a previous acquisition—the Japara aged care group bought in 2021 for $380 million—to secure financing from traditional banks and institutions. The Calvary-led consortium includes the doctor-led group Acurio Health and KnG Group.
Under the terms of the broader transaction, 25 Healthscope hospitals will be divided among several parties. Calvary will manage 14, while Pacific Equity Partners’ hospital business, Healthe Care, will acquire six hospitals, including Sydney’s Prince of Wales Private Hospital and Melbourne’s Knox Private Hospital. Acurio Health and KnG Group are expected to take control of three and two hospitals, respectively.
Healthscope, which collapsed in May 2025 with debts estimated between A$1.6 billion and A$1.8 billion owed to approximately 25 lenders, fell into financial distress under private equity ownership by Brookfield, which acquired the company for A$4.4 billion in 2019. Some lenders have reportedly recouped about 40 cents on the dollar through the receivership process. Various market sources indicated that some loss-making hospitals might be transferred to buyers for no consideration as part of the deal.
Calvary benefits from a payroll tax exemption, previously estimated to improve Healthscope’s overall financial position by roughly A$100 million annually prior to the breakup. The organisation is regarded as a credible operator in the healthcare sector, led by CEO Damien Bruce, a former McKinsey & Company partner. Jefferies Australia, with healthcare investment expert Michael Stock advising, played a key role in structuring the transaction.
Pacific Equity Partners’ Healthe Care holds significant experience managing private hospitals and intends to retain its acquisitions for several years to continue growth. Market analysts noted that landlords tied to Healthscope properties, including HMC Capital and NorthWest Healthcare Properties REIT, anticipate renegotiations of leases—typically involving short-term discounts of around 15 percent and longer-term arrangements contingent on future performance.
Calvary CEO Damien Bruce emphasized the importance of maintaining high-quality care throughout the transition. He described the deal as bringing together organisations with diverse backgrounds united in their commitment to patient services. Healthscope CEO Nicole Waldron stated that, despite the unsuccessful bid to transform into a not-for-profit entity, the company remains focused on a smooth handover for patients, staff, and doctors.
The sale of Healthscope’s assets follows earlier transactions involving other private hospital sales in Australia, such as Ramsay Health Care’s A$251 million purchase of National Capital Private Hospital and the New South Wales government’s A$190 million acquisition of Northern Beaches Hospital. The estimated value of the latest consortium bid has been reported near A$400 million initially, with improvements made since then, potentially resulting in total recoveries exceeding A$1 billion for lenders.
As the restructure takes shape, market observers remain attentive to the impact on rents and investor confidence in Australia’s private hospital sector, which has seen increased scrutiny following Healthscope’s collapse.