Health Minister Mark Butler has confirmed the government is closely monitoring the financial situation of HealthScope, Australia's second-largest private hospital operator, amid growing concerns about potential service disruptions affecting thousands of patients nationwide.

During today's National Press Club debate, the minister acknowledged discussions with other hospital operators about contingency plans should HealthScope's financial challenges lead to service reductions or facility closures. The situation potentially impacts 5,000 hospital beds and 12,000 jobs across the country.

"We're watching very closely what is happening between Healthscope and their lenders and their landlords," Butler stated, noting particular concern for markets where HealthScope hospitals are "strategically very critical."

Shadow Minister Anne Ruston questioned the government's preparedness: "I'd be very keen to understand what the Minister has been doing for the last 12 months, because it's been quite clear for the last 12 months there were some challenges, particularly around HealthScope."

The minister cited the government's successful intervention in Tasmania, where HealthScope withdrew maternity services, as an example of how Commonwealth funding could help ensure continuity of care when private operators exit markets. Both parties acknowledged the crucial role private hospitals play in Australia's healthcare ecosystem while differing on the adequacy of the government's response to date.

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