The National Health Co-operative (NHC) has entered voluntary administration due to an “insurmountable” forecast deficit, it was announced on Monday. SlavenTorline have been appointed administrators.
Since 2010, the NHC has operated eight clinics across the ACT, providing bulk billing for a GP or allied health professional of choice. It is the only cooperative model in primary healthcare of this size in Australia.
All services will continue to operate as normal, Mr Slavine reassured the NHC’s 30,000 members in an open letter published on Monday. The NHC was still solvent; it could pay its debts as and when they fall due.
Mr Slavine told ABC Radio this morning he was confident the NHC could maintain operations on a business-as-usual basis for at least three months, if not longer.
The NHC’s original clinic, in Charnwood, closed last year.
Recent staff changes and the end of JobKeeper have left the NHC facing an “insurmountable” forecast deficit for the 2021/22 financial year, Mr Slavine said.
The Board and Management had considered mixed billing, consolidating clinics, a possible merger or sale, significantly increasing membership fees, and a government subsidy for bulk billing clinics.
“Unfortunately, none of these have proven to be viable to turn around the forecast deficit in a timely manner, while staying true to the purpose of the NHC and providing affordable healthcare,” Mr Slavine wrote.
Mr Slavine told ABC Radio he was looking at other options, such as other medical practitioners or investors acquiring the practices. He hoped to know the NHC’s future direction within the next month.
Government remains committed to Walk-in Centre
Earlier this year, the ACT Government announced that the NHC Coombs clinic would open a new nurse-led Walk-in Centre in July, focusing on maternal and child services for the Molonglo Valley.
Health Minister Rachel Stephen-Smith stated today that the ACT Government could not enter into the planned sublease and undertake the required fit-out of the facility, due to the NHC Board’s considerations over recent weeks.
Ms Stephen-Smith said the ACT Government remained absolutely committed to delivering the Walk-in Health Centre in Coombs, providing children and their families with accessible, affordable healthcare closer to home.
The ACT Government and Mr Slavine are discussing options to establish the new Centre as quickly as possible.
Ongoing work with the administrator and the landlord will help the Government to understand the proposed continuation of services in Coombs and how much space is available in the current building.
Ms Stephen-Smith promised to update the Molonglo community and other stakeholders over the coming weeks as this work continues.
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