The organisation insists the closures are unavoidable; a growing coalition of critics insists the board is simply unwilling to fix the mess it made for itself.
It’s been three weeks since Cohealth announced it will cease GP and counselling services in Collingwood, Fitzroy, and Kensington by December and close the Collingwood clinic permanently in 2026.
Since then, debate over who is responsible (and who should fix the mess) has escalated sharply.
Cohealth maintains that a mix of state and federal funding pressures has made the services financially unsustainable, and has circulated a community toolkit outlining the key issues and encouraging local advocacy.
But several stakeholders suggest the full picture may be more complex.
Yarra Mayor Stephen Jolly told Health Services Daily:
“The position of the community and the Council is that both things are correct.
“We’ve seen their financial papers (a matter of public record) the massive increase in the amount of money on employee salaries, the expansion into non-core service services, for example, Cambridge Street, Collingwood, a sobering up centre that’s constantly empty.
“But they’ve kept that going, even though the much more important service of bulk billing GPs has been cut,” he said.
“But at the same time, the federal and state governments’ policies towards public health for years now have been a de facto undermining of universal healthcare, bulk billing and so forth.
“So, everyone’s got to take a bit of the blame.
“But we’re focusing all our attention particularly on the federal government, because they have the power to intervene, sack the board, put in administrators, and save or postpone these cuts until we reorganise community health in the inner city.
“Because if they do it here, there’ll be other areas that will be next,” Mayor Jolly said.
A series of packed community meetings in Kensington and Fitzroy made it clear that local anger is deep and growing.
“We totally underestimated the number of people that would turn out. It was absolutely jam-packed. We actually had to put speakers outside onto Napier Street, onto the street outside the town hall,” said Mr Jolly.
Adjunct Associate Professor Dr Stephen Alomes from RMIT was on the board at the former Kensington Health Centre, then the Doutta Galla CHS which led into Cohealth.
In his opinion, Cohealth talks the talk, but its actions are in direct contrast. He reported that a motion of no confidence in the board was raised and carried unanimously at the Kensington meeting.
“Community health should be based on voluntary dedication and community action, co-health has thrown that all away,” he told HSD.
He said instead of reviewing the services, Cohealth has responded with more PR asking for money.
“Cohealth could do the right thing — rescind the closures, work with the Health Department on a review of the services, especially given the new financially positive bulk-billing Medicare rebates which began from 1 November,” he said.
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In August, Cohealth released a comprehensive 10-year strategic plan. Part of its goal was to scale its impact, which it has done by investing in Tasmania and the sobering-up service in St Kilda. It continues to advertise for several roles in its other locations, including a Strategic Partnerships and Philanthropy Lead.
“They’re quite happy to expand when it’s empire building, but they’ve walked away from core services,” said Mayor Jolly.
“So there’s a suspicion that … Cohealth doesn’t mean community health, but corporate health.”
RISE eX-detainees, a registered not-for-profit organisation governed and led by ex-detainees based in Naarm (Melbourne), have also raised questions in their urgent statement.
“Is the Collingwood clinic sell-off part of Cohealth’s privatisation of community health service vision? Is the Collingwood clinic sell-off part of the governments’ gentrification and public housing privatisation strategy?” are two of their key questions.
“Many RISE eX-detainees members will face mandatory health decline due to the fact that there is nowhere else for us to access a competent bulk-billing GP service who has a direct line of communication with other professionals that can help us navigate and manage our complex health issues.
“This is certainly a slow death sentence for one of the most persecuted communities in Australia: ex-detainee refugee, asylum seeker and refugee survivors of war, persecution and genocide,” they said.
In a statement, a Cohealth spokesperson said:
“The Cohealth board and organisation is committed to ensuring a strong and sustainable community health service that delivers vital care across more than 30 sites and 50 services, and supports the health of communities, particularly the most vulnerable people, across Victoria and Tasmania.
“The board takes its fiscal and governance responsibilities seriously.
“The closure of GP services at Collingwood, Fitzroy and Kensington reflects ongoing challenges to meet the complex needs of our clients, many of whom live with chronic illness, trauma, homelessness or family violence.
“While the closures are deeply regrettable, they reflect long-term structural challenges in the funding and infrastructure that underpin community health, and are necessary to ensure that resources are managed responsibly to maintain the long-term sustainability of all of Cohealth’s services.”
The federal government is urging the board to reverse its decision.
In an Instagram post with Melbourne MPs Sarah Witty and Jo Briskey, federal health minister Mark Butler said:
“It’s a shock to me. I haven’t engaged with them for a couple of years, and we’ve been increasing funding to clinics like this that bulk bill progressively over our three years in government.
“We still give this clinic about $8 million every year as well for multidisciplinary care. So I was shocked. I know how important these services are to your community,” he said.
In a more formal statement to HSD, a government spokesperson said:
“The Department and Commonwealth officials continue to meet regularly with Cohealth management and expects Cohealth to provide detailed data and information to support discussion.
“We have requested the Cohealth board pause its decision while these conversations continue.
“The government remains committed to ensuring that all Australians, particularly those who are most vulnerable, can continue to access high-quality, affordable primary care close to home.”
According to Mayor Jolly, something needs to be done soon.
“The alternative is to just not intervene. My phone is ringing non-stop with people with mental health issues, people with drug issues but overwhelmingly, mums, mainly from Africa, and all over the world who live in Yarra now, ringing me up and saying, ‘what are we going to do; one of my kids is seriously sick, and this place keeps him alive because of the bulk-billing GP; I can’t get another, I can’t afford it. What am I going to do?’,” he said.
There will be another rally on Saturday 8 November at 2pm, outside Sarah Witty’s electoral office, 142 Johnston St, Fitzroy.
Mayor Jolly said they were going to announce some interim help for the community at the rally.
“We’re going to get volunteer health professionals to step in and staff the service over the break for two reasons,” he said.
“One, to keep a service alive for the people that I’m talking about, but also to put maximum political heat on the federal Labor Party to intervene, because on a national scale, we’re talking small change here financially.
“This is devastating for thousands and thousands of the poorest people in the inner city, because there’s no other bulk-billing GPs in the inner city. Some of the poorest kids and elderly and people mainly from the public housing estates would be impacted.
“It’s literally the worst attack on poor people in Melbourne in all the time I’ve been here,” he said.
