Federal government bailout extends GP services for vulnerable Melbourne patients
Butler will officially announce the bailout in Melbourne on Thursday morning. This commitment is part of the government’s vision of high-quality, affordable primary care close to home, Butler said in a statement.
“Thanks to this financing, the Albanian government has brought certainty to its partner healthcare customers,” he said. “This will be welcome news for local communities and will ensure that individuals and families can continue to access essential GP services.”
First-term Federal Labor MPs Sarah Witty and Jo Briskey, whose voters favored the affected clinics, said cuts to one of the city’s oldest free healthcare facilities had sparked dismay among their voters.
An emergency meeting was held at Fitzroy Town Hall for residents regarding the closure of community health clinics on 24 October.Credit: EddieJim
“We listened to the people in our community, and our government took strong and immediate action to maintain our vital health services,” Witty said.
Witty won the Melbourne seat from former Greens leader Adam Bandt in the May election.
Cohealth had blamed its planned cuts on inadequate Medicare rebates for complex patients (a federal liability) and a lack of state government funding to renovate its Collingwood facility, which had leaky ceilings and cracked walls.
As the federal government increases Medicare rebates, cohealth says its comprehensive services aren’t eligible for appointments billed at shorter intervals and there isn’t enough money left to cover nurses, receptionists and other operating costs.
The provider’s deficit grew from $6 million to $7.4 million between 2023 and 2024, largely due to increased staffing costs.
State government funding to redevelop the Collingwood site has not been resolved and Bartholomeusz confirmed the board’s decision to close the old building in mid-2026 still stands.
“We are concerned about staff and customer safety in that building,” he said.
Federal funding will run out four months before the next Victorian state election. Health is expected to be a key battleground and Labor wants to retake the seat of Richmond, which covers Collingwood and Fitzroy clinics, from the Greens.
Proposed changes to shared health have triggered public meetings and protests in Fitzroy and Kensington.
The federal and state governments were under pressure from a local campaign led by the Greens, the Coalition and outspoken Yarra Mayor Stephen Jolly to find a solution to keep affected services running.
Last month the Victorian Greens successfully tabled a motion in the state parliament calling on the government to step in with an emergency package for shared health; This package included $4 million to save money on GP and consultancy services and at least $25 million to upgrade the Collingwood facility. The motion was supported by Coalition and party members. Labor MPs did not oppose the motion, but the state government has so far not promised any additional money.
The federal government has pledged to work with the Allan government on a review of joint health operations. That review is expected to release its findings before July next year.
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