Calvary Health Care has confirmed it will take legal action against the ACT government, in an attempt to stop it from forcibly acquiring Calvary Public Hospital.
The government is expected to pass legislation on Wednesday giving it power to forcibly acquire the Catholic-owned hospital, making way for a new hospital on the existing Calvary site.
Calvary Health Care chief executive Martin Bowles told ABC Radio Canberra with the legislation set to go through, the government had left it no choice but to challenge the takeover in court.
"The way the bill and the regulations operate, it tries to limit our abilities," he said.
"We believe that it is an invalid piece of legislation that will go through, and we will challenge that in the courts."
Under the terms of the takeover, the government is required to compensate Calvary's current owner according to "just terms", but Mr Bowles said it was not yet clear what those would be.
"I haven't heard anything from the government about what they propose 'just terms' to be – that's the problem," he said.
"Maybe if we could work out what that means it would be a different conversation. We've met a couple of times [but] all I get is process and more process.
"It puts Calvary in a very difficult position, and more importantly it puts the 1,800 staff in a very difficult position."
Health Minister says legislation can withstand challenge
But ACT Health Minister Rachel Stephen-Smith said she was confident the government's legislation could withstand the legal challenge.
"It very clearly provides for this acquisition to be made on just terms, and we have laid out in regulation … how those just terms would be determined," she said.
Ms Stephen-Smith urged Calvary Health Care to "think about the staff… and the need to provide certainty and a smooth transition".
"Our encouragement to Calvary would be continue to talk to us, continue to work through how we can make this transition as smooth as possible for the staff at Calvary Public Hospital in Bruce, and for consumers who rely on our health services," she said.
"Our commitment is absolutely to support staff and consumers through this transition."
Ms Stephen-Smith said there were some parts of the proposed takeover that had to be sorted by July 3, but she said other parts could be worked out a little later.
"We have a transition plan in draft that, once the legislation is passed, our transition lead will share with Calvary's nominated transition lead," she said.
"It will be a joint process to work through how that transition goes ahead, that will include engaging Calvary Public Hospital staff in the process."
