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Private hospital operator to close 17 out of 20 psychology clinics
ABC NEWS (Australia)
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7/24/2025
Returning now to the closure of Ramsay Health Care's psychology clinics. The private hospital operator's decision to shut 17 of its 20 psychology clinics by September has sparked concerns about the treatment options left for patients.
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00:00
One of the most important things in mental health care is the therapeutic relationship
00:06
between the clinician, in this case the psychologist, and the patient.
00:11
And there's obviously going to be massive disruption for thousands of people on that
00:14
front.
00:15
It's unclear what the pathways to new care will actually be here.
00:23
Maybe some of them will continue, maybe through telehealth it seems to be hinted at by Ramsey.
00:29
But telehealth is a poor substitute for face-to-face care.
00:33
It's often necessary as better than nothing, but it's not ideal.
00:39
And of course this disruption puts patients at risk of relapse, of their conditions worsening,
00:46
and of course then long delays in getting access to other forms of care.
00:51
Ramsey says that this decision reflected in part growing demand for support that is easy
00:58
to access and flexible, as well as rising costs, uneven demand, and operational complexities.
01:05
What do you make of that?
01:06
Well there's no doubt there's been a very big increase in need for care in mental health.
01:13
We published a Lancet Commission last year in the teenage and young adult area, the youth
01:18
mental health crisis, basically a 50% increase in need for care over the last 15 years.
01:24
The federal government is responding to that by emphasizing this in their reform package
01:30
in the election.
01:31
So there'll be $700 million put into strengthening and building new dimensions to the youth mental
01:38
health system, which is very, very welcome.
01:41
But this needs to go a lot further, not just for young people, but also for older adults.
01:47
There is a strengthening of that too in the election commitments, but these are salary based
01:53
models, team based models based on evidence.
01:56
And they're going to be available in more outer metro and rural and regional areas.
02:02
A lot of the people working in the Ramsey system and the private medicine system, private psychology
02:07
system, are located in affluent suburbs.
02:10
And so people are really missing out in these other parts of Australia.
02:13
So a private model, a subsidised private model won't work for those parts of Australia.
02:18
And we need a much more salary based, team based model, which is much better for patients
02:23
anyway.
02:24
Yeah, well, you've just said there that there is a need for more access to mental health facilities.
02:31
We know that there are already significant wait times.
02:34
So why would there be a need financially for Ramsey to be closing clinics?
02:41
Yes, that's a fantastic question, actually.
02:44
The only thing I can think of that might partly explain is they do have to rent premises.
02:49
So the cost of the facilities, the cost of reception, and all the things that go with
02:54
that might be part of the explanation.
02:57
They probably think they can get away with a much cheaper model, which is telehealth.
03:02
And it's a devolved model and the responsibility for the kind of fabric is put back onto the
03:07
practitioner.
03:08
That's the only dimension that I can think of.
03:12
But you'd have to ask Ramsey what the commercial drivers were for this decision.
03:16
But it seems like a purely commercial decision, which has really not really thought about the
03:21
needs of the community or the patients.
03:24
What kind of an impact do you expect this could have on the public system?
03:29
Well, the sort of patients that see private psychologists, especially in middle class and
03:34
affluent areas, are a different population from the people with more serious forms of
03:39
mental illness who depend on the public mental health system, which is extremely hard to
03:43
access because it's so underfunded and struggling in so many parts of Australia.
03:49
So but there would be some overlap.
03:52
And if some of these people do have more serious conditions or deteriorate because of this
03:56
disruption, they could well find themselves in emergency departments and in the public
04:00
mental health system.
04:01
But the real likely effect mainly is to add to other waiting lists and to disrupt and cause
04:10
a significant impairment in the conditions of these patients, unless it's been thought
04:15
through.
04:16
Now, maybe Ramsey have got a plan, but I just don't know.
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