Healthscope has proposed transitioning Sydney's 488-bed Northern Beaches Hospital into the NSW public health system, but any attempts to secure a windfall gain will be a huge barrier in negotiations, Treasurer Daniel Mookhey says.
Treasury, Health and cabinet officials will examine the contract and operations ahead of negotiations over the hospital's future.
The NSW government has vowed to prevent any future public-private healthcare partnerships, a move Healthscope has cited as the reason it wants to cease operating the hospital, despite a contract extending to 2038.
It's no secret Healthscope is in a distressed position but the government will not be coming to its rescue, Mr Mookhey said.
"Any attempt to get the NSW taxpayers to hand over 13 years of fictional profits is a windfall gain, and that will not be acceptable," Mr Mookhey told reporters on Tuesday.
The hospital has been under fire due to the high-profile death of a toddler in September 2024.
Joe Massa died after he and his parents waited three hours at the hospital's emergency department, which the operator has admitted was an "unacceptable failing".
An auditor-general's report probing the efficacy of the hospital partnership will also be released on Thursday.
The taskforce has begun examining the contract signed in 2014, ensuring Healthscope has complied with the letter and the spirit of the contract, Mr Mookhey said.
"We want to make sure that we got the services we were promised at the standard they signed up for."
The contract is complex and difficult to unpick.
"The reason why is this is the only time it has had to happen, and frankly, it should never have happened, and it should never happen again," Mr Mookhey said.
Healthscope operates 38 hospitals across the nation but financial turmoil at the Canadian-controlled firm has placed its future in doubt.
The government has assured services at the hospital will not be affected amid negotiations over its future.
