Healthscope discloses $21.7-million underpayment case: reports

Private hospital operator Healthscope has revealed that it underpaid hundreds of staff by an estimated $21.7 million, according to reports.

The underpayments involved incorrect wages for disability service workers and nurses not receiving their full entitlements, The Sydney Morning Herald reported.

"In both these instances, we have advised the impacted staff and have taken steps to resolve the issues as quickly as possible," a Healthscope spokesperson said as quoted by the Herald. "These are both historic issues that predate Brookfield's acquisition of Healthscope in late 2019."

Disability service workers' wages issue

Five-hundred current and former disability service employees of Healthscope Independence Services in Victoria have been affected, according to the Herald report.

"Employees were incorrectly classified in our payroll system, resulting in historic underpayments," the spokesperson said.

To address the matter, the spokesperson added that they tapped the PwC to assist with the identification of affected employees and calculate the remediation payments.

Progressive repayment to current and former staff impacted have also begun, according to the spokesperson, with the final payments expected this quarter.

Healthscope has also self-reported to the Fair Work Ombudsman, which did not comment as the matter is ongoing.

Nurses' unpaid entitlements

Meanwhile, Healthscope also revealed that nurses at Prince of Wales Private Hospital, Northern Beaches Hospital, Campbelltown Private Hospital, and Newcastle Private Hospital had issues with the accrual of annual leave.

According to the operator, the issue was due to the complex clauses in the relevant enterprise agreement, with the proper interpretation of those clauses now before the Fair Work Commission.

"Healthscope is working constructively with the NSW branch of the Australian Nursing and Midwifery Federation to attempt to resolve the matter," the spokesperson added.