The ACT Supreme Court has dismissed a bid to block what had been described as a "hostile" takeover of Calvary, paving the way for the territory government to acquire the public hospital.
Justice David Mossop announced the decision on behalf of a full bench of the court on Friday afternoon.
Calvary Health Care ACT asked the court earlier this week to declare legislation passed to enable the compulsory acquisition of the Bruce hospital invalid, describing it as "anything but just".
But lawyers for the ACT government, which plans to assume control of the hospital on July 3, told the court its legislation entitled Calvary to "just terms", including reasonable compensation.
The full court is yet to provide its reasons for the decision, but it also dismissed Calvary's application for an injunction to prevent the government exercising powers under the takeover legislation.
The government had agreed to hold off on using these powers, which included entering Calvary's land, until close of business on Friday.
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Justice Mossop discharged that undertaking when he revealed the ruling on behalf of himself, Chief Justice Lucy McCallum and Justice Belinda Baker.
Calvary's barrister, David Williams SC, flagged the possibility of an appeal.
But he said it would be difficult to identify any proposed grounds without the court's reasons, which Justice Mossop promised to provide "as soon as possible".
The court is yet to make findings about regulations that relate to the terms of the acquisition, including how the government will compensate Calvary.
But that issue is not likely to stymie the process of transitioning the hospital to government hands.
The case is due back in court for an administrative hearing next week.
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