Victorian Senator Sarah Henderson writes to ACCC calling for investigation into Epworth

The fair trading watchdog has been asked to investigate if Epworth Healthcare breached consumer law as a decision on the proposed closure of its Geelong maternity ward draws closer.

Brad and Sarah Otten with their children Will, Rosie and Johnny at a rally to save Epworth Geelong maternity unit. Picture: Alan Barber

The fair trading watchdog has been asked to investigate if Epworth Healthcare breached consumer law via alleged conduct leading up to its decision to consider closing its maternity ward at Waurn Ponds.

Victorian Liberal Senator Sarah Henderson, who has joined a campaign to keep Epworth’s maternity ward opened, wants the Australian Competition and Consumer Commission to investigate the hospital’s dealings with two obstetric practices.

“I am advised that Epworth HealthCare was considering closing the maternity unit from at least June 2022,” Ms Henderson wrote in a letter to ACCC chair Gina Cass-Gottlieb.

“Despite this potential closure being under active consideration, at no time did Epworth HealthCare inform either obstetric practice based at Epworth Geelong that closure was a possibility.

“In fact, senior management repeatedly assured the two obstetric practices that despite workforce challenges, the future of the maternity unit was not under any sort of a cloud, and they should continue to have full confidence in Epworth Geelong as a long-term provider of first-class maternity services.

Senator Sarah Henderson Picture: NCA NewsWire / Martin Ollman

“In 2022, relying on Epworth HealthCare’s various representations, Geelong Maternity Group entered into a second five-year lease agreement.

“OGB Surf Coast invested a large sum of money to fit out new practice rooms on the ground floor.

“At no stage was either practice warned of the potential for closure.”

“Given the serious nature of the matters I have raised and the consequences for the Geelong region and south-west Victoria should Epworth Geelong’s maternity service close, I request that the ACCC conduct an assessment and initial investigation as a matter of urgency.”

Geelong Maternity Group partner and senior obstetrician Michael Shembrey said the public announcement in November that Epworth was considering closing the maternity ward was the first he heard about the issue.

“There is not capacity in the region to absorb the numbers if this service (at Epworth) is to close,” Mr Shembrey said.

He said the service was growing 20 per cent per year and had helped deliver500 babies in 2022.

“We service people from the south part of Geelong, Colac, Birregurra, Winchelsea and people in western Victoria. I think the service is popular, successful and required.”

OGB Surf Coast director Michael Bardsley said the practice signed a five-year lease at Epworth in October and spent a six-figure sum on a fit out.

“We’re extremely disappointed (with the potential closure). We negotiated with Epworth and set up a group of doctors with a view to providing obstetrics and gynecological services out of Epworth for the next 20 plus years.”

Dr Bardsley said two of three obstetricians working at OGB had stopped booking patients beyond August in light of the Epworth announcement.

Epworth HealthCare did not directly address the matters Senator Henderson raised with the ACCC.

Epworth acting chief executive Luis Prado said: “We are aware of the correspondence to the ACCC. Epworth treats such matters seriously and we will respond as appropriate.”

Mr Prado said Epworth had invested in its other services included expanding its ICU, cancer, cardiac and neurosurgery offering.

“We have also increased the Epworth Geelong Emergency Department’s hours from 16 hours to 24 hours a day,” Mr Prado said.

An ACCC spokesman said: “We can confirm that Ms Henderson has referred the matters to the ACCC and we are considering the issues raised.”

In response to questions last week about reasons for the proposed closure of the maternity ward, Epworth Geelong acting executive general manager Mark Grime said the move was thought through.

“This proposal has not been made lightly,” Mr Grime said.

“Epworth must be confident that we can staff the Epworth Geelong Maternity service with the appropriate, qualified multidisciplinary team available in the short, medium and longer terms. This includes midwives and medical specialist across 24/7.

“The proposal to close the maternity service is a difficult one for everyone at Epworth Geelong and we understand this proposal impacts the broader community.

“Since the commencement of maternity services at Epworth Geelong, we have proudly supported the delivery of over 2,000 babies. However, throughout the pandemic, healthcare services around the world have faced, and continue to face, staffing challenges and Epworth Geelong has not been immune to these.”

Ms Henderson said the decision to consider closing the maternity ward didn’t make sense because it was located in one of the fastest growing regions in the country.

“In the fastest growing region in the country, not only has this created grave uncertainty for the hundreds of women due to give birth after the closure date, maternity services at University Hospital Geelong and St John of God hospital would be pushed to breaking point.”

Epworth advertiser for maternity services manager

As it considers closing its maternity ward, Epworth Healthcare is advertising for a maternity services manager.

A job advertisement posted to Seek.com.au shows the hospital wants to fill the full time role at its Waurn Ponds hospital.

Epworth job advertisement posted last week

“In this critical role, you will be a part of the Epworth Geelong leadership team working in spacious and modern facilities with 4 birthing suites, 4 Special Care Nursery cots, a post-natal ward and antenatal, lactation and domiciliary services with state-of-the-art equipment,” the job advertisement reads.

“This unit has a strong focus on research, including a post graduate midwifery program launching (sic) in 2022.

An Epworth Geelong spokesman said a temporary manager was currently in the role.

“Throughout the pandemic, healthcare services around the world have faced, and continue to face, workforce shortages and Epworth Geelong has not been immune,” the spokesman said.

“Since September, we have been seeking applications for an experienced Maternity Services Manager for a position at Epworth Geelong, using both recruitment ads and a targeted recruitment agency.”

Originally published as Victorian Senator Sarah Henderson writes to ACCC calling for investigation into Epworth