Patients at Brisbane hospital told to prepare for its imminent closure

The financially stricken Toowong Private Hospital is set to close after administrators brought in only weeks ago found no viable option to keep it open.

After a creditors’ meeting on Monday, administrators EY flagged the closure with staff, who in turn advised consulting psychiatrists and patients at one of the few private mental health facilities in Brisbane.

The collapse of the family-owned hospital has sparked crisis talks aimed at supporting current and prospective patients of the hospital, including Australian Defence Force personnel, veterans and emergency services workers being treated for post-traumatic stress disorder.

Brisbane’s Toowong Private Hospital will close after administrators found no viable option to keep it open.

Amid speculation the hospital would be closed in two weeks, EY released a statement on Tuesday afternoon to thank staff, psychiatrists and other stakeholders for their support “during this challenging time”.

EY administrators David Kennedy, Andrew Hanson, Robyn Duggan and Colby O’Brien tried to sell the hospital but found no buyers.

“Unfortunately, no viable expressions of interest have been received, and as a result, the hospital must now move to a wind-down plan,” EY said, without confirming the timeframe.

“The primary focus remains ensuring continuity of care for patients as their treatment either completes or, where appropriate, alternative care arrangements are planned.

“The administrators are working closely with admitting psychiatrists to determine the most appropriate courses of action on a case-by-case basis.”

The 58-bed hospital on Milton Road treats more than 3000 patients a year and has contracts with the Commonwealth and private health insurers.

It is well known for its trauma recovery program and offers both inpatient and day-patient services.

Administrators are working with psychiatrists to facilitate ongoing care for patients on a “case-by-case basis”.

A spokesman for the Department of Veterans’ Affairs said it was working with the administrators to ensure DVA-funded patients in the hospital continue receiving care “and that those requiring services beyond the anticipated wind down period are transferred to an appropriate alternative service provider”.

“DVA understands that administrators are working to ensure the impact on patients is minimal, this includes supporting psychiatrists to maintain continuity of care at alternative local hospitals,” the spokesman said.

A spokeswoman for Queensland Health Minister Tim Nicholls said his office was aware that the hospital would close in two weeks.

“Queensland Health continues to work with the private hospital to determine what impact the closure will have on public mental health services, and to support continuity of care if required,” the spokeswoman said.

Since the LNP took government in October, Nicholls has ordered various reviews, sought to rein in Queensland Health’s building program, and now also faces a public sector nurses’ strike.

Queensland Mental Health Commissioner Ivan Frkovic recently highlighted the “significant systemic issues” in the private sector that compromised its ability to continue treating patients and take pressure off the public system.

The pending closure comes as receivers for private hospital giant Healthscope continue to search for a financial saviour. Its hospitals, including five in south-east Queensland, remain open.

The federal government is under pressure to again intervene in Australia’s private health sector, and to compel insurers and Commonwealth pricing authorities to strike a better deal for hospitals.

Open Arms offers free and confidential 24/7 support and counselling for current and former ADF members and their families. Call 1800-011-046.