Healthcare workers at a private hospital in Canberra’s south face an uncertain future after its owners called in administrators this week.
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The Canberra Specialist Surgical Centre in Deakin is owned by the troubled national health company Ortho Group, which is battling debts approaching $100 million.
Fairfax Media revealed in April that the Ortho Group was in financial strife and facing an exodus of surgeons from its operations across Australia.
A statement from the Sydney-based company conceded the crisis surrounding its Canberra business deepened this year when nine out of 11 orthopaedic surgeons walked away from the Canberra Specialist Surgical Centre over a contractual row with Ortho Group.
But the company refused to disclose how many staff are employed at the centre and co-located business Capital Specialist Imaging.
“Ortho Group (Hospitals) Pty Ltd has entered voluntary administration after six years of operation,” the statement said.
“The business was founded in 2007 to develop state of the art day surgery facilities custom designed for orthopaedics.
“While management has been committed to finding solutions for the underperforming parts of the business, unfortunately they were unsuccessful.”
Ortho Group said the surgeons’ departure left the centre in Deakin unable to cover its costs and that a deal to sell the hospital had recently fallen through at the last minute.
“This had an immediate impact on the costs of maintaining operations at [Canberra Specialist Surgical Centre] which was difficult to mitigate in the short term,” the company’s statement said.
“Negotiations to sell [Canberra Specialist Surgical Centre] were unsuccessful last week, leaving the company’s directors with no option but to place the business in to voluntary administration.
“The administrators will be considering all options available to them in respect of [Canberra Specialist Surgical Centre] and Capital Specialist Imaging in Canberra in order to maximise the return to stakeholders and will advise their future plans as a matter of urgency.”