Avive Health is opening its second private hospital in Victoria to meet rising demand for mental health services across the state.
Avive Clinic Melbourne will be located in Alphington, seven kilometres north-east of the city's central business district, in the beginning of a $45 million project.
It will initially deliver 32 beds for specialist care following a $15 million upgrade of the site at 9-11 Old Heidelberg Road, with the first inpatient admissions and outpatient appointments expected to start in mid-2026.
"Mental health demand has increased significantly, and the system has not kept pace, resulting in access delays and pressure across the system ultimately meaning people are not able to access the support they need," Avive Health co-founder and co-CEO Greg Procter said.
"Our new facility directly addresses this crucial challenge, which is particularly acute in Melbourne, by offering a best-in-class facility and innovative treatments that prioritise long-term recovery of our patients."
Avive's first two hospitals, at Mount Eliza on Victoria's Mornington Peninsula and in Brisbane, are already operating at high capacity since opening in 2024.
The new clinic will increase the private mental health services group's Victorian inpatient capacity to 120 beds across two hospitals and support approximately 2,000 admissions annually across metropolitan Melbourne, the Mornington Peninsula and surrounding regions.
Stage one of the project will also feature four purpose-built group therapy rooms, six specialist consulting rooms, two transcranial magnetic stimulation (TMS) suites for treatment-resistant depression, and landscaped therapeutic outdoor environments, with capacity to quickly expand when demand requires.
Avive's hospitals embrace salutogenic design principles, which promote health, wellbeing and healing rather than just being a place to treat patients' symptoms.
"At Avive, we are challenging the traditional mental health ward model, as we have seen first-hand that purpose-built environments combined with integrated care can support a patient's recovery," Mr Procter said.
"We do this by replacing sterile wards with calming, human spaces including private rooms, abundant natural light, and integrated wellness facilities. Our newest hospital in Melbourne reflects our belief that the physical environment is a critical therapeutic tool in the healing process and is a key clinical anchor within Avive's expanding, integrated ecosystem of care."
Avive Clinic Melbourne will be a non-acute, voluntary facility, providing specialist inpatient care for adults experiencing:
- Mood disorders, including depression and bipolar disorder
- Anxiety disorders
- Trauma-related conditions, including PTSD
- Veterans and first responders requiring trauma-focused support
- Women's mental health concerns
- Older persons, including grief and adjustment-related conditions
Read more: Old meets new in mental care 'game-changer'
Read more: $30m hospital focused on mental health care
Previous News And Innovation:
8/6/2026 World-first trial for advanced cancer treatment

