Toowong Private Hospital, a longstanding mental health facility in Brisbane, will close permanently following financial challenges that administrators deemed insurmountable.
Hospital Closure After Nearly Five Decades
Toowong Private Hospital, a 58-bed psychiatric facility known for acute mental health care, will cease operations from Wednesday, 11 June. Operating since the 1970s, the hospital has served more than 3,000 patients annually and employed 154 specialist staff.
Administrative Review and Financial Pressures
The hospital’s closure follows a review by administrators from EY, who were appointed in May. A formal creditors’ meeting and subsequent attempts to attract a buyer were unsuccessful. Administrators have now commenced a wind-down process, with staff notifying consulting psychiatrists and patients.
Sector Funding and Operational Challenges
The Australian Private Hospitals Association (APHA) has linked the closure to broader systemic issues in the private healthcare sector. According to APHA, private health insurers have recorded approximately $2 billion in annual profits and $3.5 billion in management fees, while many hospitals face a funding shortfall of over $1 billion annually due to underpayment for insured patient care.
Toowong, alongside other private hospitals, reportedly disclosed its financials to the federal government in an attempt to demonstrate these funding gaps. The association states no corrective policy action followed. Contributing factors raised include delays in insurer contract negotiations and restrictions on internationally trained psychiatrists.
Care Coordination and Impact on Services
EY administrators stated that patient continuity of care remains a priority. They are working with admitting psychiatrists to manage transitions on a case-by-case basis. The Department of Veterans’ Affairs confirmed it is collaborating with the hospital to support affected veterans and emergency services personnel.
As a long-serving mental health provider in Brisbane, Toowong’s closure will affect thousands of patients, some of whom travel from across Queensland. The shutdown will also displace 154 staff. Queensland Health is currently assessing the impact on public health services.
Community Response and Calls for Intervention
Local official Michael Berkman, whose electorate includes the hospital, stated that his office had heard from multiple former patients who expressed concern about reduced access to care. He noted that the hospital has played a critical role in treating trauma and PTSD, particularly for veterans and frontline workers. He has written to the Health Minister requesting state intervention, referencing past examples where the State has acquired private health facilities.
An online petition launched by a former patient is also calling on the State to step in. The petition describes the hospital’s contribution to holistic mental health care and its specialised programs, including outreach services and veteran-specific treatment. It warns that the closure could strain other health services across the state. Hundreds of individuals have signed the petition to date.
Published 3-June-2025
