Calvary will receive another $65 million from the ACT to settle the takeover of its public hospital in Bruce, Canberra, which was fully absorbed into the territory’s public health system ahead of a new $1 billion hospital project. Source: Canberra Times.
The final terms of the deal mean the ACT Government will pay the Catholic healthcare operator $88.2 million, including a $23.2 million early compensation payment.
Takeover laws allowed Calvary to seek compensation for the cost of the transition. The Government considered more than 30 claims before a settlement was reached last week, covering all current and future claims.
Health Minister Rachel Stephen-Smith said she was pleased the ACT and Calvary had reached an agreement and effectively concluded the acquisition process, and thanked Calvary for its collaborative work with the Government.
The ACT had waived some debts, liabilities and financial offsets and had struck an operations agreement with Calvary to support “ongoing collaboration in relation to the operation of the Bruce campus”, the Government said.
Calvary Health Care national chief executive Damien Bruce said: “Now the matter has concluded, we look forward to focusing on our ongoing positive working relationship with the territory to ensuring people receive the quality care they need, when they need it.”
The ACT and Calvary will continue working together on utilities provision, the use and maintenance of the air bridge between the public and private hospitals and access to car parks.
Opposition Leader Leanne Castley said the entire takeover process lacked transparency and the Government had not been able to justify its decision to take over the hospital.
The ACT Government launched a compulsory acquisition process in May 2023 to take over Calvary Hospital, promising “just terms” and compensation.
The Government had been in discussions with Little Company of Mary, the Catholic organisation that operated Calvary, over its role in the future northside hospital.
However, the Government said it was forced to take the drastic step of acquisition after negotiations broke down.
Calvary Health Care ACT sought to block the “hostile” takeover, but the ACT Supreme Court in June 2023 dismissed its bid to have the special takeover laws declared invalid.
FULL STORY
ACT’s Calvary hospital takeover finished with a $65m cash payment (By Jasper Lindell, Canberra Times)
