Tasmania’s last standing private inpatient mental health clinic to shut down with $3m shortfall
‘People will die. They will take their own lives.’ A dire warning has been made amid news Tasmania’s last private inpatient mental health service will soon shut down.
The imminent closure of Tasmania’s last private mental health inpatient facility will lead to suicide deaths, a union has warned.
The 27-bed Hobart Clinic, located at Rokeby, announced on Wednesday that it would cease operations on or before October 31 due to an expected deficit of $3 million this financial year.
The closure of the clinic, which helps people with depression, anxiety, addictions and suicidal ideation, will leave Tasmania without a private mental health inpatient service following the loss of St Helens 31-bed mental health hospital in 2023.
In a statement, acting CEO Stephen Ayre said the “difficult decision” to close the not-for-profit mental health provider was made by the organisation’s board after cash flow projections.
The Hobart Clinic Mind Hub, an outpatient site in Hobart’s CBD, will however continue for the time being.
Dr Ayre said the projected cash deficit occurred due to low private health fund reimbursements and the inability for private patients to pay the increasing gap fees.
He said last year, the Hobart Clinic changed its business model to make it more financially sustainable – switching to visiting medical officers instead of employed psychiatrists.
However, Dr Ayre said the changes ran 18 months behind schedule due to financial uncertainty and challenges recruiting psychiatrists.
Dr Ayre said the organisation was currently solvent and its workforce of about 100 employees would be paid any entitlements owed.
He said most of the clinic’s inpatients were admitted on a short-term basis, and would be notified of the upcoming closure to ensure “minimal impact”.
Health Minister Bridget Archer said she was confident the public system could accommodate the Hobart Clinic’s patients.
She said in recent years, the state government had “significantly increased capacity” for mental health across the public system in recent years, including at the Peacock Centre, and was planning for more mental health hubs across the state.
But the Health and Community Services Union (HACSU) said that was wrong – and that the news was dire for people with serious mental health problems.
“The health system will not cope with this. It hasn’t coped with St Helens closing, and to lose the only other private facility – this is as bad as it gets for mental health,” HACSU state secretary Robbie Moore said.
He called on the state government to intervene and take over management of the Hobart Clinic.
“It sounds extreme, but people will die. They’re not going to be able to get the health services they need. They will take their own lives.”
Mr Moore also said the closure meant looming unemployment for the Hobart Clinic’s 100 or so staff members, given there were no other private clinics.
“There are people that have been there for 20-odd years, 30-odd years, and now they’re being told ‘you’re gone’ in a very short time frame,” he said.
“They’re still more worried about the patients than they are about themselves, but it’s really bad.”
Notably, Dr Ayre has taken over the role of the Hobart Clinic’s acting CEO from its previous leader, Kath Skinner – who led the clinic during industrial disputes and concerns over reduction of services.
Dr Ayre has himself been the subject of headlines over the years, having been sacked from his role running five hospitals in Queensland in 2019.
He worked as medical services executive director of the statewide Tasmania Health Service, having previously worked as Launceston General Hospital’s CEO between 2004 and 2008.
Anyone requiring support can phone Access Mental Health on 1800 332 388 or Medicare Mental Health on 1800 595 212.
More urgent assistance is available through Lifeline on 13 11 14 or Beyond Blue on 1300 22 46 36.
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