The emergency funding staves off the closure of GP services in Melbourne’s inner north and west, which was to hit 12,500 patients hard.
Embattled non-profit community health service Cohealth has been thrown a $1.5 million federal government lifeline that will stave off the closure of its GP services in Collingwood, Fitzroy and Kensington – for now.
Health minister Mark Butler said the government’s decision to stump up the cash will keep services open until 31 July 2026, a move that will be welcomed by the 12,500 patients who were set to lose their GPs.
The Melbourne-based Cohealth has confirmed it is also making a “contribution” to the rescue package although has not revealed how much.
In a statement released this morning, Mr Butler also announced that both the federal and state governments would commission an “independent review of Cohealth’s general practice service model, governance and finances”.
Further details of this review will be announced in the coming week.
“This will be welcome news for the local communities and will ensure individuals and families can continue access to essential GP services,” said Mr Butler.
Speaking on ABC Radio Melbourne Mornings today, he said he had been meeting regularly with Maribyrnong MP Jo Briskey and Melbourne MP Sarah Witty, who have attended community meetings and also spoken with Cohealth staff.
“We think there is a future for this service,” Mr Butler said.
“We want to get into the books really and have a look at their Medicare billing and their model of care to explore every opportunity for them to have a future well beyond 31 July.
“But they needed some bridging funding to do that.
“We’ve been working with them closely as well as with the primary health network and the Victorian government and the $1.5 million to get them through the middle of next year to the end of July next year will give us time to really review their service and chart a future for it.”
Cohealth patient “Alice” (not her real name), welcomed the news but warned it was only a BandAid. She said the independent review must be a priority.
“It’s great that the government has come through with this money, but it is not a permanent fix,” she told The Medical Republic.
“And there are still many, many questions to be answered. How did this happen? Where is the accountability? And how could they open a new place in another state [Tasmania], when it can’t manage the ones it has?
“I think the review needs to have a good hard look at the board and administration and whether they are doing a good job for the thousands of broken people who use their services.”
Mr Butler was asked by the ABC’s Rafael Epstein to explain what “getting into the books” and reviewing the service meant.
“We’re going to do a review of their service to understand what their particular model of care they have is and how they bill Medicare and whether there are ways in which they can bill Medicare in a more advantageous way,” Mr Butler said.
“We’ve already talked initially to them about this. This is not the sort of problem that’s been faced in other community health centres. We have put record amounts of funding into Medicare … particularly behind bulk billing vulnerable clients.
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“So, they will have received a very, very significant increase in their Medicare billing already. But as a couple of commentators, including Stephen Duckett, who’s well known in Victoria, have said, there’s something particular happening at Cohealth that you’re not seeing in the other Victorian community health centres.
“So, we want to get to the bottom of that and see whether there is a way we can work together along with the Victorian government to ensure this has a strong future, because it is such an important part of health services in this part of Melbourne.”
Cohealth announced the decision to close services about a month ago, saying state and federal funding pressures had made the services financially unsustainable.
It said GP and counselling services at its Collingwood, Fitzroy and Kensington sites would cease by December, and in 2026 the Collingwood clinic, which provides other services, will close altogether.
Shock over the closure quickly gave way to outrage and debate over who was responsible for the crisis, and who should fix it.
Today’s announcement also revealed that Cohealth had already been planning to defer its planned cessation of GP services until February 2026, however this had not been announced publicly.
In a statement, Cohealth chief executive Nicole Bartholomeusz welcomed the extension of services which would provide immediate relief for clients and communities who were facing the loss of long-standing, trusted care relationships.
Many of the patients attending Cohealth clinics are most marginalised and disadvantaged people in the area. Many have complex mental illness, homelessness, serious social disadvantage, addiction, chronic illness, trauma, refugee health, substance dependence and poverty.
Cohealth warned that while the extension ensured services remain open for now, it was a temporary measure, and long-term sustainable funding was required to give these communities certainty about their future healthcare.
“This extension means immediate continuity of care for thousands of Victorians who rely on trusted care from our doctors, nurses, and care teams who understand their lives and their needs,” Ms Bartholomeusz said.
Cohealth also welcomed the independent review of the GP-led complex care model, saying it represented an important opportunity to address long-standing structural issues and create a model that genuinely reflects the complexity, time and multidisciplinary care required to support people facing chronic illness, trauma, homelessness, addiction, mental ill-health and family violence.
“Community health is slow, human-centred work and is the kind of work that keeps people alive. It is our communities’ courage and persistence that drives our determination to secure a permanent and sustainable future,” Ms Bartholomeusz said.
Cohealth will proceed with the closure of counselling services next month, which was part of the original announcement. The closure of these services relates to changes in how the available funding can be claimed. The Collingwood pharmacy service will also close at this time, Cohealth confirmed in its statement.
It will also proceed with the closure of the Collingwood site in 2026, as the “building can no longer support the standard of care our clients deserve”.
Royal Australian College of GPs Victoria chair Dr Anita Muñoz said the six-month funding extension would save lives but warned more must been done to ensure patients aren’t left behind.
“We’re not out of the woods yet, but this is a positive step forward and we thank the federal government for this investment,” she said.
She said the clinics provided invaluable care to some of the city’s most vulnerable patient groups.
“If patients can’t access these services, their health and wellbeing will deteriorate, and many of them will instead present to hospital emergency departments,” said Dr Muñoz .
“Our hospitals are already under tremendous pressure and that’s one of the reasons general practice care is so important – we stop small health issues becoming much larger ones requiring urgent care.
“Unless we can find a way forward, many people will fall through the cracks of our health system – an avoidable tragedy that will compromise patient care.”
RACGP Victoria addiction medicine spokesperson Dr Eric Hadinata said the college would keep fighting for patient access to these invaluable services.
“These clinics are a lifeline for many patients with complex needs, including mental health concerns and serious alcohol and other drug issues. Given high cost-of-living pressures are still impacting many households – the timing couldn’t be worse for these clinics to end general practice services,” he said.
“Victoria is at a crossroads, and my message to all patients who rely on these Cohealth clinics is that we’re fighting as hard as we can.”
