ACT Health Minister Rachel Stephen-Smith will introduce laws to acquire Calvary Public Hospital, operated by the Little Company of Mary, into the ACT Legislative Assembly, and will rapidly take control and ownership, with a transition team delivering the facility over to Canberra Health Services from 3 July.

The hospital will be acquired on “just terms” and its 1800 staff will be retained, but it will ultimately be demolished and replaced by a new $1 billion hospital on the existing site.

The Archbishop of Canberra-Goulburn, Christopher Prowse, said he was “totally stunned and shocked” by the decision, “which came without warning or discussion.”

“We are utterly astounded. There has been no formal contact with the Archdiocese, nor has any reason been given,” Archbishop Prowse said.

“The lack of transparency of the ACT Government raises several questions and concerns. It is a very sad day when governments can simply decide to mount a take-over of any enterprise they like without any justification.

“This is certainly a worrying precedent.”