‘Beacon of hope': Future of Brisbane private hospital remains unclear
Toowong Private Hospital has provided crucial in-patient and out-patient psychiatric care to Queenslanders for more than four decades, but it's now at risk of closure.
The family-owned hospital last week appointed accounting firm EY as administrators after 'unsuccessful attempts to explore a sale in recent months'.
In a statement, administrator David Kennedy said EY was committed to ensuring the hospital continued to operate on a business-as-usual basis, 'whilst a decision can be made regarding the future of the operations'.
'We understand the challenges the company has faced, particularly in the trading environment since the COVID-19 pandemic, and we are undertaking an urgent financial and operational assessment of the company's options,' Kennedy said.
'Our focus will also include exploring potential options for a sale.'
However, finding a buyer will be challenging in the current climate, in which private hospitals and health insurers are at odds over who should shoulder the soaring cost of medical treatment, while the federal government is reluctant to intervene and has refused to bail out providers.
An industry source with knowledge of Toowong Private Hospital said the facility could no longer service its debts after years of being short-changed by health insurers while the cost of providing treatment skyrocketed.
The 58-bed hospital on Milton Road was founded by influential Brisbane builder and philanthropist Noel Austin Kratzmann, who chaired the facility until his death in 1989.
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