State govt to operate shuttered Bethesda clinic

The state government has signed a three-year lease to operate the shuttered Bethesda mental health clinic in Cockburn.

Private operator Bethesda Health Care ceased operating its Cockburn clinic in late February due to funding issues and inpatient psychiatrist shortages a year after it was opened.

Speaking on site, Premier Roger Cook announced the state government had entered a renegotiated three-year lease to operate the 75-bed clinic in Cockburn.

Under the lease with landlord Dexus, the South Metropolitan Health Service will dedicate two floors to women’s mental health services, with a focus on eating disorders, alongside alcohol and drug withdrawal services.

Once the services are gradually reintroduced over the coming weeks, the facility will become the state’s first inpatient eating disorders mental health facility.

The reconfigured clinic is expected to be fully operational within months, although the government couldn’t be drawn on an exact timeline nor a dollar value on the lease.

However, Health and Mental Health Minister Amber-Jade Sanderson said she believed the deal was on par with what Bethesda was paying, and added the private operator hadn't benefited from the arrangement. 

Although it was “disappointing and unfortunate” for Bethesda, she said there was overall community gain with the state government stepping in.

Ms Sanderson said it was no secret that Bethesda was having challenges with the Cockburn clinic, and the organisation had been in communication with the government over that period.

“They never reached capacity, I think up to twenty-five beds were only ever used, so there were no patients displaced and every patient was able to finish their episode of care," she said.

“Ultimately, what we couldn't allow to happen was a state-of-the-art facility to stand empty and not be available to the community ... and those patients come into the public system adding more pressure on that system.

“So quite frankly, we have stepped in and ensured that this is available to the community and the public. Now, it has been done carefully and appropriately, because it is taxpayers' funding.”

Bethesda Health Care previously stated that the level of reimbursement and payment from private health insurance funds, and the shortage of psychiatrists willing to look after inpatients, were two factors that led to its decision to close the facility.

From the government's perspective, Ms Sanderson said she there were no concerns about recruiting staff and attracting inpatient psychiatrists.

“Psychiatry is a challenged area, but we think people will want to come and work here,” she said.

“It's a beautiful facility, it will be an excellent model of care, and one that really makes a difference.”

But Ms Sanderson said there were major concerns around other private health operators or facilities, and called for the funding model to be reviewed.

“It is an incongruous position that private health funds have significant profits but private health facilities are on the brink of falling over,” she said.

“The funding model, the funding mix, needs to be seriously reviewed, we can't afford for private facilities to be falling over, they make up a really important part of the health ecosystem.

“We continue to urge the Commonwealth to work around some reform in this area that psychiatrists need to be renumerated for inpatient work.

“The most challenging part about private mental health facilities is that the funding for psychiatrists is more appealing to see people in their rooms than it is to do inpatient work, and we need to do both.”

Mr Cook said when Bethesda announced plans to mothball the facility, the government moved swiftly on the opportunity to extend its mental health services in the southern suburbs.

“This first-class clinic will be an important asset for our public health system as we’ll add seventy beds in the southern sector,” he said.

“Over the coming weeks, services will be progressively resumed here at the clinic and will be focused on a dedicated women's mental health facility with a focus on eating disorders.

“We will have alcohol and other drug addiction and withdrawal services, and we'll continue to make sure that our veterans and first responders continue to be looked after in this particular clinic.”

Mr Cook said they had made offers to all the staff working here to be a part of the public system workforce, and majority had taken up the opportunity.

When Bethesda Health Care announced the closure, the private operator said about 70 staff had been affected. 

Today’s announcement follows reporting in this masthead the state government was in the midst of leasing negotiations of the shuttered clinic.

The $60 million Bethesda Mental Health Clinic was officially opened by Ms Sanderson in March 2023, following seven years of planning, building and commissioning.

When the centre was opened it was dubbed a first-of-its-kind facility for the southern suburbs, which previously, and during the Cockburn clinic’s closure, lacked private care services.

Today’s announcement means the clinic’s official opening, shock closure and announcement of reopening, all took place within just 12 months.