The arrival of international hedge funds in the contest for Healthscope is increasing concerns among doctors and landlords that the country’s second-largest private hospital operator could be broken up, creating a national healthcare crisis in the middle of a federal election campaign.
Multiple people briefed on the situation said two lenders in Healthscope’s 27-strong banking syndicate had sold their debts for about 50¢ in the dollar to overseas funds, handing them a greater say in the future of the company. The buying could ultimately lead to a split of Healthscope’s assets, with more profitable hospitals remaining open while others close.
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