HBI Deals+Insights / News

What do the struggles of Australia’s private hospitals mean for private equity investors?

Private hospitals in Australia are facing a severe financial crisis, as highlighted by a recent Department of Health review. While the financial struggles of these hospitals are not new, this is the first time the government has conducted a review and officially acknowledged the issue. The review found that private hospital profit margins have nearly halved over five years as costs outpaced revenue, with “imminent closures” likely without urgent government intervention.