When profit wins, patients lose…how far mental health support has come (and gone)
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Thousands of Australians could soon be left without vital mental health care.
A major provider has quietly confirmed it’s shutting nearly all of its psychology clinics.
Frontline workers are warning the closures could trigger a wave of distress and abandonment.
Ramsay Health Care, the nation’s largest private hospital operator, announced plans to close 17 of its 20 community psychology clinics by September, leaving only three locations open.
Internal documents obtained by the media revealed the closures were the result of a company-wide review, which cited ‘rising costs, uneven demand and operational complexity’ as key challenges.
The clinics have served thousands of patients, including children and high-risk individuals managing depression and PTSD.
A Ramsay psychologist, who spoke on the condition of anonymity, said the move could have devastating consequences for patients forced to seek alternative care.
‘Clients are being left in limbo because they potentially are going to have to wait a month or two to see their regular psychologist if they are continuing on somewhere else, or they're going to have to start all over again,’ she said.
‘The more clients are going through revolving doors, eventually, they just give up.
‘This has been extremely frustrating because I'm trying to advocate for clients and for best client care, but it's like words are falling on deaf ears, they are not taking concerns seriously.’
Ramsay’s decision comes at a time when Australia is already facing a critical shortage of mental health support.
While Medicare-subsidised psychiatric services increased by almost 20 per cent between 2018–19 and 2021–22, the number of services delivered in private settings fell by around 15 per cent.
A federal Health Department review last year highlighted a decline in access to private psychiatric care and the sector’s struggle to recruit and retain hospital-based psychiatrists.
Psychiatrist and former Australian of the Year, Patrick McGorry, said there was a ‘great risk’ that patients could fall through the cracks.
‘We already have this access problem, with only 50 per cent of people who have a need for mental health care able to access it at all, and often after long delays,’ he said.
‘This will worsen that situation potentially.
‘It'll throw more patients potentially back on a public sector that's severely underfunded at a state level and in crisis in several states.
‘So I think this is not a good signal to be sending to the public.’
Ramsay Health Care said it was not stepping away from mental health care entirely.
It confirmed that clinics in Cairns, Charlestown and Joondalup would remain open, and that it was considering expanding its existing telehealth services.
‘We remain committed to supporting high-quality, accessible services, whether in hospitals, in communities or online,’ a staff briefing note stated.
‘This decision reflects a growing community demand for mental health support that is easy to access, flexible, convenient and connected to other services.’
In a public statement, the company said it was reshaping its model to meet the evolving needs of both clients and clinicians.
‘We understand this change might be unsettling and we are working closely with our psychologists to ensure every client is supported and has continuity of care, whether through our existing and expanded telehealth service or with another trusted provider, depending on what is clinically appropriate,’ a spokeswoman said.
‘This change is part of Ramsay's broader strategy to strengthen how we deliver high-quality, accessible and connected care across hospital, home and virtual settings.’
The Health Minister’s office said it had urged Ramsay to communicate clearly with patients about their options and noted the government was working on reforms to improve mental health services.
‘The government is delivering a billion-dollar investment to roll out even more places where Australians can go for free, public mental health care,’ a spokesperson said.
‘Providing more free, public mental health services for Australians with different levels of need will help to relieve pressure on the subsidised services provided by private psychologists.’
Shadow Health Minister Anne Ruston said the closures were an ‘unacceptable outcome’.
‘This concerning decision highlights the rising unaffordability of mental health support, which is forcing more and more Australians to delay seeking care,’ she said.
The following Ramsay clinics are set to close:
This isn’t the only mental health facility facing closure, and it’s raising even more alarm bells about the system’s fragility.
While Ramsay winds down its clinics, another long-running hospital is preparing to shut its doors after nearly five decades of care.
It’s yet another blow to those already struggling to access support when they need it most.
Read more: Calls for changes to mental health funding as Toowong Private Hospital set to close after nearly 50 years
Will these closures leave more Australians falling through the cracks of a broken mental health system?
A major provider has quietly confirmed it’s shutting nearly all of its psychology clinics.
Frontline workers are warning the closures could trigger a wave of distress and abandonment.
Ramsay Health Care, the nation’s largest private hospital operator, announced plans to close 17 of its 20 community psychology clinics by September, leaving only three locations open.
Internal documents obtained by the media revealed the closures were the result of a company-wide review, which cited ‘rising costs, uneven demand and operational complexity’ as key challenges.
The clinics have served thousands of patients, including children and high-risk individuals managing depression and PTSD.
Ramsay to shut most psychology clinics. Image source: Pexels/Danny Doneo
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
A Ramsay psychologist, who spoke on the condition of anonymity, said the move could have devastating consequences for patients forced to seek alternative care.
‘Clients are being left in limbo because they potentially are going to have to wait a month or two to see their regular psychologist if they are continuing on somewhere else, or they're going to have to start all over again,’ she said.
‘The more clients are going through revolving doors, eventually, they just give up.
‘This has been extremely frustrating because I'm trying to advocate for clients and for best client care, but it's like words are falling on deaf ears, they are not taking concerns seriously.’
Ramsay’s decision comes at a time when Australia is already facing a critical shortage of mental health support.
While Medicare-subsidised psychiatric services increased by almost 20 per cent between 2018–19 and 2021–22, the number of services delivered in private settings fell by around 15 per cent.
A federal Health Department review last year highlighted a decline in access to private psychiatric care and the sector’s struggle to recruit and retain hospital-based psychiatrists.
Psychiatrist and former Australian of the Year, Patrick McGorry, said there was a ‘great risk’ that patients could fall through the cracks.
‘We already have this access problem, with only 50 per cent of people who have a need for mental health care able to access it at all, and often after long delays,’ he said.
‘This will worsen that situation potentially.
‘It'll throw more patients potentially back on a public sector that's severely underfunded at a state level and in crisis in several states.
‘So I think this is not a good signal to be sending to the public.’
Ramsay Health Care said it was not stepping away from mental health care entirely.
It confirmed that clinics in Cairns, Charlestown and Joondalup would remain open, and that it was considering expanding its existing telehealth services.
‘We remain committed to supporting high-quality, accessible services, whether in hospitals, in communities or online,’ a staff briefing note stated.
‘This decision reflects a growing community demand for mental health support that is easy to access, flexible, convenient and connected to other services.’
In a public statement, the company said it was reshaping its model to meet the evolving needs of both clients and clinicians.
‘We understand this change might be unsettling and we are working closely with our psychologists to ensure every client is supported and has continuity of care, whether through our existing and expanded telehealth service or with another trusted provider, depending on what is clinically appropriate,’ a spokeswoman said.
‘This change is part of Ramsay's broader strategy to strengthen how we deliver high-quality, accessible and connected care across hospital, home and virtual settings.’
The Health Minister’s office said it had urged Ramsay to communicate clearly with patients about their options and noted the government was working on reforms to improve mental health services.
‘The government is delivering a billion-dollar investment to roll out even more places where Australians can go for free, public mental health care,’ a spokesperson said.
‘Providing more free, public mental health services for Australians with different levels of need will help to relieve pressure on the subsidised services provided by private psychologists.’
Shadow Health Minister Anne Ruston said the closures were an ‘unacceptable outcome’.
‘This concerning decision highlights the rising unaffordability of mental health support, which is forcing more and more Australians to delay seeking care,’ she said.
The following Ramsay clinics are set to close:
- Victoria — South Melbourne, Box Hill, Bundoora, Frankston.
- Queensland — Fortitude Valley, Clayfield, Ipswich, Southport, Maroochydore, Coolangatta.
- New South Wales — St Leonards, Parramatta, Liverpool, Erina, Wollongong.
- Western Australia — West Perth, Mount Pleasant.
This isn’t the only mental health facility facing closure, and it’s raising even more alarm bells about the system’s fragility.
While Ramsay winds down its clinics, another long-running hospital is preparing to shut its doors after nearly five decades of care.
It’s yet another blow to those already struggling to access support when they need it most.
Read more: Calls for changes to mental health funding as Toowong Private Hospital set to close after nearly 50 years
Will these closures leave more Australians falling through the cracks of a broken mental health system?
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