Healthscope taps former Qantas exec Tino La Spina as new CEO amid $1.6b debt pain

The nation’s second-biggest private hospital operator, Healthscope, has tapped former Qantas international boss Tino La Spina to take on the top job amid its $1.6 billion debt pain.

In an internal memo obtained by The West Australian, Healthscope told staff chief executive Greg Horan would step down to be replaced by Mr La Spina, who was also the former chief finance boss of building materials provider Boral.

Mr La Spina was recently appointed as Healthscope’s deputy chief.

Healthscope — owned by US private equity giant Brookfield — operates 38 hospitals across the country, including 12 in NSW and 13 in Victoria. In WA, it operates Mount Hospital on Mounts Bay Road.

As part of the management shake-up, Healthscope also said chair Len Chersky would be replaced by Brookfield executive Sophia Rihani.

“Greg became CEO following COVID, and his leadership was crucial in stabilising the business and setting it up for the long-term,” Mr Chersky said in his note.

“He has overseen significant improvements in staff safety, turnover, patient experience, operational efficiency and in our commercial arrangements with insurers. He has led with strength and humility, earning the respect of our people, doctors and the wider industry.”

Mr Horan will continue as CEO until the handover is complete before resuming his role as a non-executive director at Healthscope and as a managing director in Brookfield’s Private Equity Group.

It was reported last November that Healthscope received a waiver from its lenders on a $1.6b loan, giving the private hospital operator until March to negotiate higher reimbursements from health insurers.

Last month, Healthscope and health insurer Bupa averted a funding crisis with a new two-year deal that would spare millions of patients from massive out-of-pocket costs.