Mount Gambier Private Hospital services to transition into the city’s public system

Jobs have been saved and regional private health care services secured as the Limestone Coast’s only private hospital is handed a last-minute lifeline.  

Thirty jobs have been saved and regional private health care services secured under a plan to move the Limestone Coast’s only private hospital care under the public system.

Just hours after the Mount Gambier Private Hospital Board announced it would cease operation, it has been revealed care will be transitioned into the city’s public health system.

The decision comes less than a month after the hospital entered voluntary administration amid a funding crisis.

Limestone Coast Local Health Network chief executive Ngaire Buchanan confirmed the services would come under the co-located Mount Gambier and District Health Service (MGDHS) from August 21.

Limestone Coast Local Health Network chief executive Ngaire Buchanan. Picture: Limestone Coast Local Health Network

“We would like to assure the community that private surgical and medical services will still be available in Mount Gambier,” Ms Buchanan said.

“This plan ensures no impact to private services and further ensures the job security of all staff so the community will still be able to access the same services with their private health insurance.

“Patients using their private health insurance can still select their preferred specialist and private patients will not be charged a gap payment.”

Earlier on Tuesday, the board announced its final day of trading would be August 21.

“At a recent meeting of creditors and administrators, with the Limestone Coast Local Health Network being our largest creditor, it was voted to close the facility,” the statement said.

Mount Gambier Private Hospital entered voluntary administration in July. Picture: Jessica Ball

“The Board of the Mount Gambier Private Hospital would like to thank the community for their support over the past 23 years.”

Less than a month ago the 20-bed facility entered into a five-week voluntary administration.

At the time, acting chair Catherine Lunnay said changes in the operation model over the past five years had had a direct impact on its economic performance and long-term feasibility and she was hopeful the situation could be remedied.

Ahead of the confirmation, Mount Gambier MP Troy Bell said he would be “extremely disappointed” if the private hospital closed with urgent action needed to ensure it continued to function.

“At a state and federal level we need to do everything we can to make sure the residents of the second largest city have access to a private hospital,” Mr Bell said.

Mount Gambier MP Troy Bell. Picture: Supplied Troy Bell

“People take out private health for a reason, one of those reasons is hospital cover, which saves the Federal Government every time somebody uses their private health.”

Mr Bell said there had been discussions in recent weeks regarding the viability of a new purpose-built stand-alone private facility.

“There has been a lot of work put into establishing a private hospital in Mount Gambier, but detached or outside of the public hospital.

“That was focusing on theatre space, operating space and that would give the residents of Mount Gambier and surrounds, perhaps more access to operations that could occur here instead of travelling to Adelaide or Warrnambool.”

Previously, hospital co-administrator Austin Taylor confirmed there were long-term problems with its operational model.

He said hospital operators had asked the state government for funding for a number of years and was left with a “shortfall” of $250,000.

The hospital was fronted with a bill they could not pay of around $800,000 after MGDHS increased the rent.

The decision comes just days after the chief psychiatrist was forced to intervene in the public Mount Gambier Hospital’s mental health services.