Established in 2014 under a 40-year agreement, the partnership is now deemed at risk of failure due to misalignment between Healthscope's commercial objectives and NSW Health's clinical priorities.

Key issues identified include increased rates of patient falls, severe birth trauma, and insufficient actions to mitigate identified clinical safety risks since the hospital's opening in 2018.

A recent audit released by NSW Auditor-General Bola Oyetunji has revealed significant failures at Northern Beaches Hospital, highlighting tensions between commercial objectives and clinical outcomes in its public-private partnership with Healthscope.

Healthscope, which operates 38 hospitals across Australia, has faced ongoing financial difficulties, leading to a request to relinquish the public portion of Northern Beaches Hospital, which was rejected by the NSW Ministry of Health.

The scrutiny surrounding the hospital has intensified following the tragic deaths of two children, including toddler Joe Massa, who died after a prolonged wait in the emergency department, and newborn Harper Atkinson, whose mother believes a delayed surgery contributed to her child's death.

The audit indicates that the hospital is failing to deliver quality healthcare, putting its partnership with the NSW government at risk due to inadequate healthcare standards and clinical safety concerns.

The report attributes troubling results for hospital-acquired complications to the conflict between clinical outcomes and profit motives inherent in the public-private partnership model.

Despite Healthscope's request to return the hospital to public control due to financial viability concerns, the NSW Health department has insisted that the company fulfill its contractual obligations.

In response to these incidents, New South Wales Premier Chris Minns has banned public-private healthcare partnerships, emphasizing the need for hospitals to prioritize patient care over profits.

The audit makes several recommendations, including assessing the effectiveness of the current public-private partnership model and addressing existing safety and quality concerns.

A parliamentary inquiry is set to investigate the safety and quality of services at Northern Beaches Hospital, with public submissions closing next month.

Health Minister Ryan Park acknowledged the typical on-call arrangements for weekend nights but indicated that a review will assess their appropriateness to improve healthcare delivery.