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Healthscope Limited (ASX:HSO) is selected as the preferred bidder for the new Northern Beaches Hospital in Sydney.

Healthscope chief executive Robert Cooke says the chance to build and manage a new $600 million hospital for the NSW government will showcase the company's ability to handle such arrangements as states increasingly turn to private operators to share the burden of public healthcare.

The company, which rejoined the market in a $3.6 billion listing in July, was named on Wednesday as the preferred bidder for Sydney's Northern Beaches Hospital project, beating shortlisted rival Ramsay Health Care.

The 488-bed hospital in Frenchs Forest will treat privately insured and public patients. Healthscope and the government are expected to finalise a contract before the end of the year, ahead of construction starting next year. The hospital is slated to open in 2018.

Hoping to finalise the contract in coming months: Healthscope chief executive Robert Cooke. Photo: Luis Ascui

NSW Premier Mike Baird said the total cost for the project would be $1 billion, with $400 million of that dedicated to road upgrades in the area.

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Mr Cooke said the contract was "an opportunity for us to showcase our key performance indicators and most importantly clinical quality standards".

"This is the first [public private partnership] opportunity that has come up for many years and we believe that the many benefits in this model will see further projects along this line in Australia in the coming years," he said.

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Healthscope preferred bidder for Northern Beaches hospital