30/11/2020 - 11:00

Peel Health Campus to be nationalised

30/11/2020 - 11:00

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Mandurah’s largest general hospital will receive $152 million of upgrades as the facility is returned to state government ownership over the next three years.

Peel Health Campus to be nationalised
Roger Cook (right) and Mark McGowan framed yesterday's announcement as necessary for expanding healthcare coverage in Peel. Photo: Gabriel Oliveira

Mandurah’s largest general hospital will receive $152 million of upgrades as the facility is returned to state government ownership over the next three years.

That announcement by Premier Mark McGowan and Health Minister Roger Cook yesterday morning, comes five months after Ramsay Health Care, the entity that operates Peel Health Campus, proposed a redevelopment of the site.

The ASX-listed healthcare provider is one of Western Australia’s largest hospital operators, jointly administering services at Joondalup Health Campus and wholly operating Hollywood Private Hospital.

As part of the plan, 890 staff currently employed by Ramsay Health Care will be given the opportunity to transition into the public sector with their entitlements intact.

Peel Health Campus, which will continue to have co-use of facilities for a private hospital on site after 2023, employs 936 people, according to Business News’ Data & Insights.

The move to renationalise the facility comes after the state government halted three major contracts held by Serco Australia at Fiona Stanley Hospital in March.

Those contracts, worth $93 million over 10 years, accounted for the employment of about 650 people, with those jobs subsequently brought back into the public sector.

The state government has terminated several private contracts over the past 12 months, including contracts held by Programmed, Suez and Sodexo.

“Earlier this year we were able to bring back some Fiona Stanley Hospital services to public hands, and now we can put an end to privatised services at Peel Health Campus,” Mr McGowan said.

“We’ve sought to return public control of the privatised services, where it’s responsible to do so, and continue to put patients first, ensuring they have choice and access to health care close to home.”

The state government’s new funding dwarfs the $10 million pledged to the campus over the course of the state government’s first term in office.

New funding will bring 63 additional inpatient beds to the hospital, which already has 206 beds, as well as additional capacity for chemotherapy, mental health and palliative care patients.

Approximately $20 million of new funding will be allocated to transition costs in the mid-year budget review, with a further $2 million to be spent over the next 18 months on developing a business case and procurement plan for expansion.

“It’s time the Peel Health Campus received the significant revamp it deserves to ensure it can continue to meet the needs of the Peel-Murray patients,” Mr Cook said.

“I thank Ramsay Health Care for their work in delivering health services at Peel Health Campus.

“The state government will continue to work with Ramsay Health Care at Peel Health Campus to ensure a smooth transition as the service comes back into public hands.”

Shares in Ramsay Health Care were down $1.02, to $63.23/share, as of 1pm AEDT.

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