Toowong Private Hospital, owned by NA Kratzmann & Sons, is in voluntary administration

A private hospital, owned by a renowned Brisbane construction family has gone into voluntary administration, after failing to find a buyer.

Toowong Private Hospital has gone into voluntary administration.

A private psychiatric hospital in Brisbane’s inner west, owned by a renowned Brisbane construction family, has gone into voluntary administration after failing to find a buyer.

The 58-bed Toowong Private Hospital, that has been operating or almost 40 years on Milton Rd, was owned by NA Kratzmann & Sons.

The hospital went into external administration on Wednesday and is now being administered by David Kennedy, Colby O’Brien, Robyn Duggan, and Andrew Hanson of EY. Staff were told of the situation yesterday.

Mr Kennedy said they were committed to working closely with management, staff, and

specialists to ensure the hospital continues to operate on a business-as-usual basis, prioritising

continuity and quality of care for patients, while a decision can be made regarding the future of the operations.

“We understand the challenges the company has faced, particularly in the trading environment since the Covid-19 pandemic, and we are undertaking an urgent financial and operational assessment of the company’s options,” he said.

“Our focus will also include exploring potential options for a sale.”

Toowong Private Hospital has provided psychiatric services for almost 40 years.

Mr Kennedy said the decision to appoint voluntary administrators was made after unsuccessful attempts to explore a sale in recent months. He said they will keep all stakeholders informed as they navigate the process.

Builder and property developer Noel Austin Kratzmann developed the Toowong Private Hospital that opened in May 1976, and chaired the hospital board until his death in 1989.

As a builder in the 1950s Mr Kratzmann had companies based in Brisbane and Townsville, and won contracts for a number of large projects: hospitals, power stations, hotels – including Stanley Korman’s Chevron Hotel, Surfers Paradise – banks, buildings at the University of Queensland, and housing developments, both public and private.

Mr Kratzmann and his wife were patrons of the Twelfth Night Theatre, in the 1960s and helped to finance the company’s new theatre at Bowen Hills.

After his death, the family endowed the Kratzmann chair of psychiatry at the University of Queensland and assisted the university to restore the Customs House, its city campus.

Originally published as Toowong Private Hospital, owned by NA Kratzmann & Sons, is in voluntary administration