The imminent closure of Toowong Private Hospital in Brisbane has sent shockwaves through Australia’s mental health sector, with warnings that it could be the first in a domino effect impacting other private psychiatric hospitals. As the 58-bed hospital prepares to shut its doors after nearly 50 years, patients, clinicians, and advocates are voicing deep concern about the future of mental health treatment in Australia.
Toowong Private Hospital is closing. What’s next? [Source: Facebook]
A Place of Healing, Now Facing Closure
For many, Toowong Private Hospital has been more than just a medical facility—it has been a sanctuary. Brisbane resident Rebecca Kuenstner, a former Australian Defence Force member, credits the hospital for her recovery from PTSD.
“This has probably been the best thing that’s ever happened to me,” she said tearfully. “It gave me a family pretty much… that connection is probably the most important one after you’re discharged.”
Her story is not unique. Army veteran Cain Chambers also attributes his life to the hospital’s pioneering trauma recovery program. “I probably wouldn’t be alive if it wasn’t for Toowong,” he said.
The hospital has been pivotal for many veterans and first responders in Queensland, offering innovative treatments including intravenous ketamine for severe depression. The closure leaves patients scrambling for alternatives in a mental health system already under strain.
Why Is Toowong Private Hospital Closing?
According to the Australian Private Hospitals Association (APHA), the closure is largely due to the “rapacious profiteering” of health insurers. APHA CEO Brett Heffernan squarely blames the insurance industry for underfunding facilities like Toowong over the past three years.
“Over the last three years, the private health insurance industry has been engaged in rapacious profiteering,” Mr Heffernan said. “They’ve banked more than $2 billion a year in record profits, while they’ve short-changed hospitals.”
He also revealed that one major health insurer had refused to renegotiate a contract with Toowong for 13 months, while another declined to contract at all.
However, Rachel David, CEO of Private Healthcare Australia, representing insurers like Medibank and Bupa, rejected the claims, arguing that hospital admissions have declined as more psychiatric care occurs in outpatient settings. “Even if we were to double what we paid hospitals, it still wouldn’t stop the closure of more stand-alone mental health facilities,” she said.
After dedicating 25 years to the hospital, Dr Josh Geffen is now clearing out his office. [Credit: ABC News/Nikoles Coleman]
A Broader Industry Breakdown
The collapse of Toowong Private Hospital is not an isolated incident. Mr Heffernan warned that at least seven other private mental health hospitals are at “imminent” risk of closure.
“It makes a mockery of the government’s claim that mental health is a national priority,” he said, describing Toowong’s demise as just “the tip of the iceberg.”
The issues go beyond funding. A national decline in admitting psychiatrists, many of whom now prefer the financial benefits of private clinics over hospitals, has also contributed to empty beds and reduced patient intake.
Dr Josh Geffen, who served at Toowong for 25 years, expressed concern that many patients will now end up in already overstretched public emergency departments. “It’s going to delay access to care for acutely unwell people, ultimately increasing their suicide risk,” he warned.
The Political Response
Federal Health Minister Mark Butler acknowledged the gravity of the situation, stating he had urged insurers to increase payouts for hospital services. “Ultimately, the solutions lie with insurers and hospitals working together,” he said.
Mr Butler has formed a national forum of stakeholders, including the Australian Medical Association, to explore long-term reforms to improve sustainability in the private health sector.
Queensland Health has also stepped in, saying it is working closely with administrators to ensure continuity of care for Toowong patients and will provide additional resources if necessary.
Federal Health Minister Mark Buttler [AAP / Diego Fedele]
Patient Futures in Limbo
Despite government assurances, patients like Kerrie Czernia remain deeply anxious. She is currently undergoing ketamine treatment for major depressive disorder—therapy she credits with saving her life. “There’s that anxiety, stress… where are we going now? What are we going to be given?” she asked.
Ms Czernia fears she may have no choice but to enter the public system, where she would only qualify for treatment if she becomes critically unwell. “I don’t ever want to have to get to that stage to access public health,” she said.
A Call for Reform
Healthcare professionals and patients alike are calling for urgent reform to ensure the survival of critical mental health facilities like Toowong Private Hospital. Suggestions include allowing health insurers more flexibility to fund outpatient mental health care and creating new funding models that reflect modern treatment practices.
Dr Rachel David stated: “We need a funding model that takes account of the fact that a lot more mental health treatment is taking place in the community now than it did in the 1980s and 1990s.”
For Cain Chambers, however, it’s not just about funding. It’s about lives. “I’d like to know that if I had to go back into hospital, I’d be back in Toowong,” he said.
Dr Rachel David believes it’s time to reconsider the current funding model for mental health treatment. [Source: ABC News/supplied]
Final Thoughts
The closure of Toowong Private Hospital is a wake-up call for Australia’s mental health system. As one of the few private psychiatric hospitals in Brisbane offering comprehensive care to veterans, first responders, and civilians alike, its loss is a blow not just to its 3,000 annual patients, but to the nation’s already stretched mental health services.
If no solution is found, this could mark the beginning of a larger crisis. The time for finger-pointing is over—what’s needed now is action, innovation, and compassion.
