NSW health minister wants Calvary Mater PPP ended by year-end
- NSW Health Minister Ryan Park wants the Calvary Mater PPP terminated before year-end.
- The NSW government response noted the inquiry’s call to end the PPP.
- Novacare Health subcontracts maintenance at the Mater to Honeywell.
- NSW backed a recommendation to review all existing public-private partnerships.
NEWCASTLE, AUSTRALIA — New South Wales (NSW) Health Minister Ryan Park wants the state to end the failed public-private partnership (PPP) behind Calvary Mater Newcastle hospital before the end of the year.
The partnership’s private side, Novacare Health, subcontracts maintenance at the hospital to Honeywell, and the government has made clear the two companies, not Calvary, were responsible for the Mater’s problems.
Minister says termination work is daily
Park spoke to the Newcastle Herald ahead of the government’s response to a parliamentary inquiry into mold and maintenance at the Mater.
“People are working on it literally every day. I’m not trying to drag it on any longer,” Park said.
Asked whether he preferred the Mater in public hands or under a new arrangement with Calvary Health Care, Park said he wanted to see advice from NSW Health and NSW Treasury. He said the process had to be “considered by the cabinet.”
Government response stops short of takeover
The inquiry report, released in NSW Parliament in August, recommended ending the PPP. It also recommended moving ownership and management of the Mater to NSW Health as soon as possible.
The government’s response, released Nov. 5, “noted” those recommendations, saying “the state is considering options for the future of the PPP,” the Herald reported.
It did support a separate recommendation for NSW Health to review all its existing public-private partnerships to prevent harm to quality of care or to patient and staff safety.
Dr. Amanda Cohn, the inquiry chair and Greens health spokeswoman, welcomed the wider review but criticized the decision on ownership.
“The government has had more than enough time to consider options and the community deserves action,” Cohn said.
Repairs continue while contract talks run
NSW Health Infrastructure said remediation works at the Mater are continuing to progress. Cladding replacement at the Mater Institute is complete, and facade works on the mental health building are scheduled to start in late 2026.
The government is finalizing priority projects for a A$400 million (about US$275 million) maintenance program for NSW public hospitals, with the Mater set for a big slice of the money.
What it means for providers
The Mater shows how accountability can blur when hospital maintenance runs through a chain of contractors. The state’s partner, Novacare, passed the work to Honeywell, while Calvary runs the hospital’s services for the state.
For health systems that outsource maintenance or other non-clinical services, the NSW review of all PPPs is a reminder to check how subcontracted work is overseen and what exit terms the contracts carry.
Health systems weighing facility outsourcing or wider healthcare outsourcing can compare providers on OA’s list of the top 50 healthcare outsourcing companies worldwide.
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