The ACT government has reached a compensation settlement totalling more than $88 million with Calvary Health Care over the controversial takeover of its former hospital in Canberra’s north.
The government took over the Catholic-owned Calvary Public Hospital in Bruce — which is now known as the North Canberra Hospital — in 2023.
Early compensation payments totalling $23.2 million were paid to Calvary in 2023, and talks had been ongoing about further compensation.
The government has now confirmed a settlement was reached late last week, with an additional $65 million to be paid.
ACT Health Minister Rachel Stephen-Smith said the cash payment was in line with the projections and provisions made by the government at the time of the acquisition.
“I am pleased that we have been able to reach an agreement that provides certainty for the territory and Calvary and effectively concludes the acquisition process,” she said.
A cross on Calvary Public Hospital was removed as part of the takeover in July 2023. (Supplied: Catholic Voice)
Ms Stephen-Smith said the government had waived some debts, liabilities and other financial offsets to come to a settlement, and that it has also entered into an “operations agreement” with Calvary “to support ongoing collaboration in relation to the operation of the Bruce campus”.
“I recognise that the acquisition and transition was stressful for many staff, and I thank the incredible teams at North Canberra Hospital and Clare Holland House that have continued to provide exceptional care as part of Canberra Health Services,” Ms Stephen-Smith said.
“Since the transition, there have been many achievements as staff have worked together across our hospitals to build a single integrated public health system.”
Calvary Health Care’s national CEO Damien Bruce confirmed the settlement agreement marked the end of the acquisition process.
“We look forward to focusing on our ongoing positive working relationship with the territory to ensuring people receive the quality care they need, when they need it,” he said in a statement.
New $1 billion hospital to be built
The government made the acquisition to facilitate the delivery of a new northside hospital on the site, which will cost more than $1 billion, making it the largest health infrastructure project ever undertaken in the ACT.
The take-over was made possible through legislation that passed the Legislative Assembly, allowing for the government to compulsorily acquire the hospital’s assets and effectively transition Calvary staff to Canberra Health Services.
At the time, the ACT Supreme Court dismissed Calvary’s attempt to stop the takeover, giving the government the green light to proceed.Â
Rachel Stephen-Smith says she’s pleased the government has been able to reach an agreement with Calvary Health Care. (ABC News: Mark Moore)
“Calvary will continue to be an important partner in delivering health care in Bruce and across the ACT through its private hospitals and aged care facilities,” Ms Stephen-Smith said.
“The ACT government will continue to work closely with Calvary on operational matters between our services in Bruce, including on the provision of utilities, the use and maintenance of the airbridge and access to car parking.”
Earlier this year, Multiplex, which recently completed the expansion of Canberra Hospital, was appointed by the government as the early delivery contractor to plan and design the new hospital.