The ACT government has announced controversial plans to take over the Catholic-owned Calvary Public Hospital.
The government said today it would allocate more than $1 billion towards a new hospital in Bruce at the existing Calvary site, and construction would start as early as 2025.
The government and Calvary Health Care began negotiating the hospital's future in May last year, but they were unable to reach an agreement.
The government said it would now introduce new legislation on Thursday to compulsorily acquire the hospital's assets and effectively transition Calvary staff to Canberra Health Services (CHS).
"The ACT government continues to make significant investments in infrastructure to build Canberra's future and ensure we meet the needs of our growing city," Chief Minister Andrew Barr said in a statement.
Mr Barr said the Critical Services Building at the Canberra Hospital would be finished by next year.
"Within the next decade, there will be two new hospitals with bigger emergency departments, more treatment spaces and modern equipment to meet the healthcare needs of Canberrans," he said.
The government had proposed buying the hospital for $77 million in 2010, but its owner, the Little Company of Mary Health Care, pulled out because it needed approval from the Vatican that it said would take years.
'Calvary has played an important role'
The government said it had set up a "transition team" to transfer hospital care from Calvary Health Care ACT to CHS at the start of July this year.
Calvary will also be compensated as part of the takeover.
Health Minister Rachel Stephen-Smith said the $1 billion cost was a "big decision for the future of healthcare in the ACT" to consolidate health services.
She said the takeover would consolidate the ACT's public hospitals and create a single health network, allowing the government to "better coordinate health services, distribute resources effectively and strengthen the capacity of our workforce".
She added Calvary had "played an important role in the delivery of public hospital care for generations of Canberrans over the last 44 years".
"I want to thank all Calvary Public Hospital staff, past and present, for their dedication to helping Canberrans in times of need," she said.
The government did not provide details about staff movements within Calvary or ACT Health Services, but Ms Stephen-Smith said she hoped "the vast majority of staff" at Calvary Public Hospital would continue in their current roles.
She welcomed these staff to CHS, while "recognising the need to respect the hospital's distinct culture and values".
"We know this will be a stressful time for Calvary staff and we are committed to supporting them through this transition and providing as much certainty as possible," Ms Stephen-Smith said.
"The vast majority of staff will continue doing the jobs they do today with their current teams."
At a media conference today, Ms Stephen-Smith said it was "no secret" the government and Calvary had had a "strained" relationship over the years, but said the takeover was not a product of that.
Calvary 'extremely disappointed' by takeover
After the announcement, Calvary said in a statement it was "extremely disappointed" after 44 years of operation.
"Calvary is extremely disappointed in the ACT government's unexpected and unilateral decision to introduce legislation that effectively dissolves our partnership on public health delivery in the Territory," Calvary's national chief executive Martin Bowles said.
"To date, Calvary has been an active participant in discussions with the ACT government, including being committed to operating the new hospital and we reject the chief minister's position that Calvary's proposal prevents the delivery of a publicly owned hospital that provides an accessible, accountable and sustainable health system in the territory."
He said Calvary would continue to provide care while it considered the government's announcement.
"Calvary is committed to remaining part of the territory's healthcare system and providing the effective and efficient care that we are known for by the community," he said.
Mr Bowles said the hospital was committed to the well-being of its 1,800 employees, "who have not been consulted at all about the potential ramifications of this decision".
"We will support them through the next steps and aid their understanding of the options available to them," he said.
Speaking to the ABC later in the day, Mr Bowles said he and others working within the organisation were "devastated" by the news.
"I'm not for exaggerating by saying these people are absolutely devastated," he said.
The Canberra Liberals panned the decision, with acting Opposition Leader Jeremy Hanson describing it as "outrageous thuggery by the chief minister and health minister".
"Calvary [is] rightly angry and the fact the government have decided to forcibly acquire the best-performing part of ACT Health is outrageous," he said.
"What this highlights is that a royal commission into ACT health services is a necessity and this acquisition needs to be in the terms of reference."
In a letter to CHS employees obtained by the ABC, CHS chief executive Dave Peffer described today's announcement as a "game-changer", adding the move "makes sense".
"Our objective through the transition is to neatly, and simply, transition folks with two employment contracts to one, with CHS," he said.
He added that existing Calvary staff would retain their conditions and entitlements.
