The ACT government will pay more than $88 million in total compensation to Calvary Health Care over the controversial takeover of Calvary Public Hospital in 2023. Early compensation payments totalling $23.2 million have already been paid to Calvary, with a settlement reached late last week to pay an additional $65 million.
00:00A controversial takeover with a hefty price tag. Calvary Healthcare will receive a cash payment of $65 million from the ACT to settle the takeover of the public hospital in Bruce on top of $23 million already paid.
00:18It has been a long process. It's been a collaborative process. We've really appreciated the work that Calvary has done with us and it's really good to have reached this settlement and to be able to move forward.
00:30The ACT government took over the Catholic-owned Calvary Public Hospital, now known as North Canberra Hospital, in 2023. The health minister insists it's a decision that has benefited Canberrans.
00:41We heard from staff at the time that there were real opportunities for increased collaboration, increased integration of care and that's already what we're starting to see two years in.
00:50It hasn't improved services. We know that ACT is still one of the worst jurisdictions for emergency and elective surgery. $90 million is a lot of hip replacements, a lot of colonoscopies.
01:00The Canberra Liberals are steadfast in their view that the takeover should never have happened.
01:06It disrespected Calvary, it disrespected the staff and now we finally have a price on what that really poor decision of ACT labour costs.
01:15As part of the settlement, the government has waived some debts, liabilities and other financial offsets. The government has also entered into an operations agreement with Calvary, which it says will support ongoing collaboration at Bruce, where Calvary still operates a private hospital.
01:29I really want to recognise the way that Calvary has worked with us in a collaborative way to work through the claims process.
01:36In a statement, Calvary said it was also looking forward to a positive working relationship going forward. The ACT government made the acquisition to build a new Northside Hospital, which is expected to cost more than $1 billion and be completed by the end of 2031.
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01:55In a statement, Labor that saysolas no need to be completed, as a celebration in itself.
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