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The NSW government is one step closer on Tuesday to bringing the Northern Beaches Hospital back into public hands after striking an $190m in-principle agreement with operator Healthscope and receivers. The deal marks the “final phase” in the government’s push to return the hospital to public ownership following a string of high-profile controversies, including the death of two-year-old Joe Massa last year. Cradling Joe’s shoes alongside husband Danny, mum Elouise Massa said she knew her son’s case was not isolated and there had been “systemic failures” at Northern Beaches Hospital. “These are Joe’s shoes, and I proudly carry them with me everywhere I go,” she said. “Joe is leaving behind footprints we will never forget in NSW.” Ms Massa said state government was making “monumental steps” in restoring safe services to Northern Beaches. Health Minister Ryan Park also sought to deliver a strong message on Tuesday. “There’s three words NSW Coalition members should say today to the people of NSW: ‘We are sorry’.” The privatisation model was established by the former Coalition government, but has since been outlawed by Labor. Mr Park did not let up during question time, saying it was “arguably one of the worst examples of privatisation in this state’s history”. “Privatisation of public hospital services should never happen again in NSW, but none of us over this side will ever trust them (the opposition) to follow that rule again,” he said. In one fiery exchange, Mr Park labelled it a “disastrous arrangement”. “You have one job this afternoon … you need to say sorry,” he said. Mr Park said a petition was expected to be delivered later on Tuesday from Liberal MP David Cros concerning the hospital. ‘Great cost’ of move Under the agreement, the entire 494-bed hospital will be returned to public ownership. All clinical and support staff working at the hospital will be offered jobs by NSW Health at the site, and staff entitlements will be transferred from Healthscope. But, the future of private services at the site remains uncertain. The NSW government said it would consult with clinicians to determine future clinical services and an operating model. Addressing the media, Health Minister Ryan Park acknowledged residents had expressed anxiety about the future of private services. “I’ve heard loud and clear from the community through their local members, from discussions with clinicians directly, that this is important,” he said. “What I can’t say yet us the makeup and the way in which that will be implemented. “That’s why we see this as the start, not the end, of this process.” Mr Park said the first step was to integrate the hospital into the local health district, and more detailed engagement would happen over the coming weeks and months. He confirmed the public takeover would include the existing 200-plus private beds, but what private services would be offered was still to be determined. “It is complex and we didn’t expect to be doing this during this term of parliament,” he said. Treasurer Daniel Mookhey confirmed the funds to Healthscope were for buildings it paid for and not any prospective profits. He said the state government was having to “repair the previous government’s mistakes at great cost”. It will now be up to Healthscope’s creditors whether the agreement is approved. If not, under a law passed earlier this year the state government has the right to terminate the contract unilaterally. ‘Worst decisions of any NSW government’: Minns NSW Premier Chris Minns said the decision by the former Coalition government to enter into a public-private partnership (PPP) at Northern Beaches was “one of the worst decisions of any NSW government”. “Our state’s acute hospital services that provide lifesaving care to the people of NSW should not be privatised, and thanks to this decision, no hospital in NSW will be,” he said. Mr Park said the state government had in a matter of months undone “one of the most complex privatisation arrangements in the state’s history”. “We have worked with an urgency and speed to provide certainty for the community, patients and staff. We thank the staff for their hard work and co-operation as we continue to work through the transition,” he said. “This agreement does not mark the end – but the beginning – of the transition of a major hospital into the public health system.” Mr Park noted there would still be challenges ahead, but staff and clinicians would have the opportunity to continue working at the hospital. The state government will now finalise the legal and commercial arrangements required for transfer. Northern Beaches Hospital was one of six hospitals earmarked for privatisation under the former government but the only one to go ahead. Earlier this year, operator Healthscope entered receivership after lenders withdrew their support. The NSW government has also introduced Joe’s Law, which prevents any further attempts to create PPPs at acute care hospitals.