The NSW Government is moving swiftly to secure expanded powers to terminate its public-private partnership (PPP) agreement with Healthscope for Northern Beaches Hospital.

Although the government prefers a negotiated handover with Healthscope and its receivers, it emphasized the need for legislative power to prevent prolonged disputes that could jeopardize local patient care and burden taxpayers. Under the current contract, voluntary termination could expose the state to "hundreds of millions" in compensation; however, the proposed amendments are designed to limit payouts to actual costs, thereby preventing windfall gains.

The government reiterated that it will continue negotiating to avoid a formal handover, but these measures act as a safeguard to ensure public service reliability. Patient care will remain unaffected during the ongoing discussions, which include engagement with the newly established Northern Beaches Hospital Taskforce, tasked with managing the transition and safeguarding service quality. This move follows earlier steps by the Minns Labor Government, including the passage of legislation banning future acute-care PPPs (after the tragic death of toddler Joe Massa) and initiating parliamentary inquiries into hospital safety and quality.