Private healthcare giant Ramsay shuts psychology clinics

Australia’s largest private hospital company will shut 17 of its 20 psychology clinics in a matter of months.

The country’s biggest private hospital company will shut the majority of its psychology clinics in a matter of months.

Ramsay Health Care notified staff of the closure of 17 of its 20 clinics earlier this month.

The three remaining clinics are in the Newcastle suburb of Charlestown, in Perth’s northern suburbs, and in Cairns.

“We understand this change might be unsettling and we are working closely with our psychologists to ensure every client is supported and has continuity of care, whether through our existing and expanded Telehealth service or with another trusted provider, depending on what is clinically appropriate,” a spokesperson said.

“This change is part of Ramsay’s broader strategy to strengthen how we deliver high-quality, accessible and connected care across hospital, home and virtual settings.”

Ramsay Health Care is a major player in Australia’s private healthcare industry. Picture: Jason Edwards / NewsWire

Only Ramsay’s community-based psychology clinics are closing, not its hospital mental health services or inpatient and day programs.

Federal Greens leader Larissa Waters said half of Australians who needed mental health support already could not get it.

“The waiting lists are huge, and so it’s devastating to see that a private healthcare operator is going to close down yet more facilities, and where are those people going to go?” she said.

“Health care shouldn’t be for profit, and it shouldn’t be how much money you’ve got on your credit card to enable you to get the health care that you need.

“So it’s a real shame that profit seems to be driving this outcome that will have a real impact.”

Ramsay Health is listed on the Australian sharemarket and valued at $8.9bn. The company’s share price is down 16 per cent over the past 12 months.

Erina on the NSW Central Coast is one of the clinics to close. Picture: Google

In August, Ramsay Health Care reported a nearly triple full-year profit of $888.7m, up from $298.1m the year before. The large return was mostly due to the sale of Ramsay’s stake in Ramsay Sime Darby, which owns hospitals in Malaysia and Indonesia.

The financial results gave shareholders an 80 cent dividend per share across the financial year.

“The government should be providing healthcare services as a universal right of all Australians, and it shouldn’t be whether or not a private company’s profit margin is going to work to determine the outcomes for Australians’ access to mental health care,” Ms Waters said.

The 17 clinics are being shut progressively until the final one closes the doors permanently by the end of August.

Ramsay Health Care’s share price has tumbled over the past year. Picture: NewsWire / Gaye Gerard

Four Melbourne clinics are being shut, three in Sydney will close, two in Perth will shut, and single clinics on the Sunshine Coast, Ipswich, the Gold Coast, NSW’s Central Coast and Wollongong will close.

“After careful consideration, we are transitioning Ramsay Psychology to a more flexible and sustainable model, which includes the progressive closure of 17 clinics by the end of August,” the Ramsay spokesperson said.

“Three clinics, in Cairns (QLD), Charlestown (NSW) and Joondalup (WA), will remain open to support local needs, maintain key partnerships and pilot more integrated models of care.

“Ramsay Health Care is reshaping how it delivers community-based mental health support to better meet the evolving needs of clients and clinicians.”

The National Mental Health Commission’s National Report Card was also released on Thursday, the same day as news of the Ramsay closures broke.

Health commission chief executive David McGrath said fewer and fewer people could afford mental health care.

“We have also seen a steady rise in financial stress and in the proportion of people in

Australia delaying mental health care due to cost in the last four years,” Mr McGrath said in the report.

“Disappointingly, many social factors impacting mental health are not showing improvement (e.g. loneliness and experiences of discrimination) and positive experiences of mental health care have remained stable.”

People were feeling less secluded than in the previous year, the commission found, and more people were getting help now than in 2007.

“However, there is no question there is a long way to go – our younger generations continue to report heightened psychological distress and financial stress and have a much higher prevalence of mental health challenges relative to the rest of the population,” Mr McGrath said.

Originally published as Private healthcare giant Ramsay shuts psychology clinics