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The Canberra Times
The Canberra Times
Lucy Bladen

Calvary takeover to begin but first there is a legal challenge

Calvary Assembly debate

Staff at Calvary Public Hospital Bruce have been told it will be "business as usual" at the hospital until next Wednesday.

For many of the health staff and other frontline workers it will be. They will show up to work to treat patients, save lives and help bring new life into the world.

But as they do this the organisation they currently work for and the organisation they will potentially work for will be gearing up for a battle.

The ACT Legislative Assembly passed legislation this week to compulsorily acquire the Bruce hospital, kicking off a transition process for Canberra Health Services to take control in just 33 days.

Over the next month, the 1800 staff at Calvary need to decide if they accept new contracts, non-Calvary branded uniforms will need to be developed, ICT systems will need to be replaced and thousands of records will need to be handed over.

But before this can happen, there is one big hurdle in the way: a legal challenge.

'Business as usual'

Calvary finally showed its hand this week when national chief executive Martin Bowles confirmed the organisation would take legal action against the government's planned acquisition.

The Catholic health organisation confirmed this on Tuesday, following weeks of speculation.

The matter was before the Supreme Court on Thursday, with Calvary Health Care ACT seeking an injunction to stop the compulsory acquisition of the hospital.

But the hearing happened before the legislation was officially notified, meaning the court was unable to make a judgement. There will be a full-day hearing on Wednesday for the possible injunction.

Both sides will be required to make submissions during the hearing.

Rachel Stephen-Smith, Ross Hawkins and Cathie O'Neill. Pictures by Dion Georgopoulos, Elesa Kurtz, Sitthixay Ditthavong, Gary Ramage

In the interim, the ACT government has agreed it will not enter Calvary, as is allowed under the legislation, until Wednesday's hearing. Calvary is also not required to cooperate with the acquisition until after the hearing.

The government has said it will continue work on the transition despite the court challenge, even though it will be prevented from entering the Bruce hospital.

Calvary regional ACT chief executive Ross Hawkins emailed Calvary staff on Thursday to update them on the court hearing.

"This means it is business as usual at Calvary Public Hospital Bruce until Wednesday next week and the territory cannot exercise any rights to enter hospital land, require information from Calvary or otherwise require Calvary to cooperate with it to effect any transition of the public hospital from Calvary to the territory, up to and including the final hearing date," Mr Hawkins' email said.

If an injunction is granted, this would result in a very awkward situation.

It's difficult to imagine that Calvary and the ACT government would be able to have any working relationship while a legal challenge is looming over their heads.

Calvary's hospital is part of the territory's public health system and the government funds all activity at the hospital. If the relationship is broken, that could be damaging for the entire system.

Mr Bowles has argued the short timeframe for the acquisition could put "clinical safety at risk". He has said this timeline was "unrealistic" and has "distressed our people".

Calvary's legal argument against the legislation is "just terms" are not available. The government's legislation has said Calvary would be paid compensation on "just terms".

Health Minister Rachel Stephen-Smith speaking ahead of the acquisition bill passing the Assembly on Wednesday. Picture by Elesa Kurtz

Following the court hearing, Health Minister Rachel Stephen-Smith said she was unable to comment on the legal proceedings but in the days prior she did make some remarks.

She said she was confident the government's legislation would withstand any legal challenge.

Ms Stephen-Smith told the Assembly on Wednesday that "just terms" did not require a compensation package to be finalised before the acquisition.

"While Little Company of Mary was granted the land in Bruce for free, the buildings and maintenance have been funded by the government and Calvary healthcare claims to make no profit from running the hospital, any compulsory acquisition must be undertaken on just terms," she said.

"This recognises the interest of the private provider in the service and that it has a further 76 years to run on its crown lease of the public hospital land."

'Not starting up the hospital from scratch' 

If Calvary's attempt for an injunction is rejected, the government will be able to start the formal transition.

Calvary will be required by law to comply with the acquisition and will have to cooperate with the government to "ensure a safe and orderly transition".

The government will be granted a range of powers, including being able to enter the hospital, carry out inspections, undertake a stocktake of hospital equipment and assess what's needed when Canberra Health Services take over the hospital.

But officials will have to provide notice before their entry.

"We're not starting up the hospital from scratch, we are transitioning the existing workforce under a new owner," Canberra Health Services transition boss Cathie O'Neill said.

"We intend to keep all of their processes as much as possible the same as they currently are today."

Calvary and the government will also have to negotiate on items and equipment in the hospital.

"The legislation allows for the transfer of all assets to CHS," Ms O'Neill said.

"Part of the transition plan is to work with Calvary to do a full asset assessment and stocktake and agree what they are handing over and what they are not."

A cross on the front of Calvary Public Hospital Bruce. Picture by Gary Ramage

During the transition there will also be other practicalities to deal with. including the name and branding in the hospital.

The government has said it has not yet determined, or will not yet reveal, a new name for the hospital. Mr Bowles has previously told The Canberra Times the Calvary name and branding would need to be removed by acquisition day.

Of particular interest will be the religious iconography around the hospital. A big cross adorns the front of the Bruce facility and there are several religious images and ornaments around the Catholic hospital.

These will form part of the asset negotiations with Calvary but it's hard to imagine a secular-run hospital would keep Christian imagery and Calvary will most likely want to hold onto these items.

'Catholic ethos gives a real soul to the place' 

While the government has tried to avoid it, religion has played a massive part of the conversation.

The Catholic Church has mounted a significant campaign against the acquisition and sermons across Canberra over the past few weeks have focused on the government's acquisition.

Archbishop Christopher Prowse out the front of Calvary hospital this week. Picture by Gary Ramage

Canberra and Goulburn Archbishop Christopher Prowse visited the Bruce hospital this week and said following the acquisition: "The Catholic ethos gives a real soul to the place rather than it just being a facility."

Even though the government has been adamant this is not about religion, there will come a point during the transition when the Catholic ethos will have to be dropped.

There will be an immediate change to this ethos at the hospital following the acquisition and that will be the expansion of reproductive services to women access to elective permanent contraception.

"Women who have a caesarean section when they're having a baby at the Centenary Hospital for Women and Children can choose to have a tubal ligation done at the same time but that is not an option that's available to them at Calvary public hospital," Ms Stephen-Smith said.

"So those kinds of changes will take place pretty quickly following the transition."

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