Private hospitals vital to Australia's mental health

THIS Mental Health Week (4-10 October 2025) it is important to understand the critical role of private hospitals in accounting for 61% of acute mental health care cases in Australia.

"It is not often understood, including by policymakers, that in acute psychiatric care private and public hospitals complement each other," APHA CEO Brett Heffernan said. "They treat different cohorts of acute patient needs, so when private psychiatric services close, people fall through the cracks.

"Over the last couple of years 10 private mental health hospitals or units in private hospitals closed permanently, including renowned acute psychiatric Toowong Private Hospital in Brisbane in June. Tasmania's last acute private psychiatric hospital, The Hobart Clinic, will discharge its last patient on 17 October.

"The consequences are dire for patients and their families, with more strain heaped on struggling GPs and, ultimately, the Emergency Departments of general public hospitals.

"Already overburdened GPs are doing the best they can in treating mental health patients. In 2023, 4.8 million Australians (18% of the population) filled prescriptions for mental health medication. The vast majority were antidepressants (72%), with GPs prescribing 85% of all medications.

"Increasingly, patients with mental disorders are being medicated instead of getting the professional attention they need. There simply aren't the psychiatrists for GPs to refer patients.

"By 2024, more than 90% of psychiatrists said their workforce crisis is negatively impacting patient care, 73% of those have a wait list and a growing number of clients are waiting six months to a year for an appointment. Almost half closed their books to new patients, while many others simply left the profession due to the strain.

"Since 2022 private hospitals have urged Federal Health Minister Mark Butler to ease the 10-year moratorium that prevents internationally-trained psychiatrists already in Australia from working in private hospitals. Pulling this simple policy lever would free-up accredited psychiatrists to practice in acute private hospitals. So far this has fallen on deaf ears.

"When affected by deteriorating mental illness, patients have nowhere to go but an already overburdened public hospital Emergency Department where the wait times are long and the care options are extremely limited.

"Ultimately, they are simply sent home with the promise of a community follow up visit in a few weeks' time. Meanwhile, they and their families live in constant fear and helplessness awaiting their next episode when the tragic cycle starts again.

"Governments love to talk about Headspace programs and out-patient clinics as a fillip for patients. These programs have their place. But they do not deal with the severe mental health cases that require hospitalisation.

"Despite their essential role, private hospital mental health services face more closures. Of the nine private hospitals currently on the brink of closure, eight are either dedicated psychiatric hospitals or have mental health units.

"The imminent closure of The Hobart Clinic highlights the plight of hospitals and their patients. The hospital is being forced to shut due to a projected $3 million deficit, reflecting inadequate reimbursements from private health insurers in the face of rising operating costs.

"This Mental Health Week, the crucial and indispensable contribution of private hospitals to Australia's mental health system should be a focus. Policymakers must move to ensure these services remain viable, accessible and able to meet the growing demand for acute mental health care."

-ENDS-

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23/9/2025 Hobart Clinic closure another mental health blow