'Shocking': Hospital inquiry urges axing of public-private partnership

Calvary Mater Hospital should return to public hands, inquiry finds Wed 5 Aug 2026 at 12:06pm In short: A NSW parliamentary inquiry investigating a string of alleged maintenance failures at Newcastle's Calvary Mater Hospital has recommended terminating the public-private partnership. The inquiry's report was tabled to parliament today along with seven recommendations. What's next? The government must respond to the report's recommendations. "Shocking revelations" have led to a NSW parliamentary inquiry calling for a Newcastle hospital to be put back in public hands. The Calvary Mater Hospital, which operates under a public-private partnership, is one of the leading cancer hospitals in regional NSW, with some patients travelling hours to receive care. But it has been under intense scrutiny over the past 12 months, after a mould infestation was found in the hospital's cancer unit, and maggots were found spread across the hospital floor. The parliamentary inquiry was chaired by Greens MP Dr Amanda Cohn, who said in a statement the revelations shared by staff and whistleblowers were "shocking". "We heard about maggots falling from the ceiling onto a patient, nurses funnelling rainwater into garbage bins during the night, a doctor fainting during surgery because of high humidity in the operating theatre, and explosive allegations of falsified maintenance records," she said. "All these problems could have been prevented. "Hospital management and the NSW government knew about these issues for years, and failed to address them." The report recommends the NSW Government terminate the current public-private partnership and bring ownership and management of the hospital directly into NSW Health as soon as reasonably possible. . It also recommends the Orange and Bathurst Hospital public-private partnerships be analysed for value, including whether services should be returned to direct public management by the Western NSW Local Health District. Speaking in the Hunter region late last month, Premier Chris Minns said the public-private contract was a costly mistake, but not one that could be easily undone. "We're committed to making the situation far better at the Mater," he said. "We don't want that privatised model of care "[But] we have to examine the scope of that deal so that taxpayers don't have to foot the bill." Following the mould discovery, the state government commenced rectification works on the building, including the replacement of non-compliant cladding. Union welcomes findings In a statement, Health Services Union Secretary Gerard Hayes said the recommendations made by the committee must be implemented urgently. "Our members at the Calvary Mater have been raising the alarm about mould, potable water failures, intimidation of whistleblowers and a 'sweep it under the rug' culture for close to a decade," he said. "The committee has listened, and the recommendation that the hospital return to public hands is a moment of accountability. Mr Hayes said the findings showed a "clear message about the failure of the public-private partnership model in our health system". "Whether it's the Northern Beaches or Newcastle, staff and patients are put at risk," he said. "It's time to end the failed experiment." The ABC has approached the Calvary Care and NSW Health for comment. [Image text:] CallvaryMater Ne