The entire Northern Beaches Hospital will move into public hands, after the state government reached an in-principle agreement with the receivers of cash-strapped private operator Healthscope.

Taxpayers will fork out $190 million to take control of all 494 beds, while clinical and support staff will be offered jobs with NSW Health.

Since its opening in 2018, the hospital has operated under a public/private model, with Healthscope providing care to public patients under a contract with the government.

Chris Minns speaking to the media.

Mr Minns confirmed this morning the government would pay $190 million to take over the hospital.  (ABC News: Ethan Rix)

However, the death of two-year-old Joe Massa last year exposed a series of deficiencies and the state government since began negotiations to take back control.

Premier Chris Minns said his government was reversing one of the “worst decisions” of the previous Coalition government, which he said had “foisted” a private hospital model on the people of the Northern Beaches.

“Our state’s acute hospital services, that provide lifesaving care to the people of New South Wales, should not be privatised,”

he said.

“Thanks to this decision, no hospital in NSW will be.”

He also paid tribute Joe Massa’s parents, Elouise and Danny, who have campaigned for the hospital to return to public hands.

“Their advocacy will leave a lasting legacy for every patient and every family who relies on our public health system.”

A young boy holding plants in a backyard and smiling.

Toddler Joe Massa died at Northern Beaches Hospital last year. (Supplied)

In September, the government announced NSW Health staff had been embedded within the hospital, to begin its transition to public hands.

However, Health Minister Ryan Park has repeatedly spoken of the difficulties in taking back a “public portion” of the hospital, while leaving another portion for a private provider.

Many of the hospital’s facilities are shared, creating significant challenges when it comes to the division of assets.

While bringing the whole hospital into public control will eliminate that uncertainty, it will raise more questions about the future of the specialist services currently offered at the facility.

The state government will announce more details of the in-principle arrangement at a media conference this morning.