Calvary is "extremely disappointed" in the ACT government's "unexpected and unilateral" decision to compulsorily acquire Calvary Public Hospital Bruce, the CEO says.
The ACT government says it was forced take over the hospital after negotiations with Little Company of Mary, which runs Calvary, broke down.
Canberra Health Services is expected to start running Calvary public hospital on July 3.
While the proposed legislation will allow for flexibility on the acquisition date, it will not be impeded on compensation negotiations.
The government will build the new northside hospital at the Bruce site.
Calvary wanted to run the new northside hospital, Calvary National CEO Martin Bowles said.
"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," he 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.
"Calvary was absolutely committed to the remaining 76 years of our [100-year] contract in the ACT."
The Canberra Times understands that Calvary rejected an offer made by the ACT government.
Discussions started in May 2022 but broke down early this year.
The announcement is distressing for Calvary staff, Mr Bowles said.
"Our priority is the wellbeing of our 1800 employees at Calvary Public Hospital Bruce, who have not been consulted at all about the potential ramifications of this decision," he said.
"Unsurprisingly, this announcement is distressing for them and we will support them through the next steps and aid their understanding of the options available to them.
"For 44 years Calvary has been a trusted local healthcare provider and we thank our staff, who deliver exceptional compassionate health care daily and without judgement.
"Calvary will continue to provide uninterrupted, quality care to the people of Canberra, while currently considering the ACT government's decision and next steps."
Most Calvary staff members were only made aware of the acquisition on Wednesday morning.
All employees will be able to keep their jobs, the government said.
They said most are already employed as public servants so entitlements won't change.
The Canberra Times understands it is expected some people will not choose to be re-employed by Canberra Health Services.
Canberra Health Services wants to keep teams together in the short term, but new opportunities may open up in the future. They hope to bring together specialists in different teams towards the end of the year.
Anyone previously dismissed by Canberra Health Services and then employed by Calvary will not be re-employed by CHS.
In a letter to staff, Mr Bowles and ACT Regional CEO Ross Hawkins said they were "surprised and disappointed" with the decision.
"Calvary is currently considering the ACT government's decision and has written to the minister," the email said.
"We are organising some town hall discussions today to provide the information we have."
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