The Hobart Clinic has named national mental health provider Avive Health as its preferred partner in a bid to secure the long-term future of Tasmania’s only large-scale private mental health clinic.
Board chair Tim Booker said the clinic had held discussions with several Australian specialist mental health providers before selecting Avive and signing a term sheet.
“Avive will now conduct a detailed due diligence process that we expect will take about four weeks to complete,” he said.
“As part of that, Avive representatives will spend time in Tasmania to build a real understanding of our facilities, our systems, our people and how we deliver care.”
Booker said the term sheet was not binding, with any final arrangement still subject to due diligence, documentation and board approvals.
“A term sheet is a serious step and it reflects real confidence on both sides, but it is not a done deal.”
He said the board had tested every option against three criteria – capability, capital and community ownership.
“Most importantly, Avive has the capability and the track record,” he said.
“It runs purpose-built specialist mental health hospitals on the mainland and its model is clinician-led, clinicians shape the services and how the hospitals operate.”
Avive Health operates hospitals in Brisbane, on the Mornington Peninsula and in Melbourne, with facilities in Adelaide and on the Gold Coast in development.
Its inpatient hospitals typically run at around 60 beds, more than double the Hobart Clinic’s 27.
Booker said scale remained the clinic’s central structural challenge.
“We know that at 27 beds we are below the scale a private mental health hospital needs to sustain itself,” he said
“Should this future partnership eventuate, it is this problem this solution will help solve.”
He said the land and buildings were not for sale as part of the process and that the board intended them to stay in not-for-profit hands
“The site was created for a community-purpose and it should stay that way.”
Services will continue as normal throughout the due diligence period, with no changes to inpatient care, day programs or outpatient services.
The clinic reopened in November last year after a $2 million state government grant saved it from permanent closure.
