Butler will formally announce the bailout in Melbourne on Thursday morning. In a statement, Butler said the commitment was part of the government’s vision for high-quality, affordable primary care close to home.
“Through this funding, the Albanese government has given certainty to cohealth’s clients,” he said. “This will be welcome news for the local communities and will ensure individuals and families can continue access to essential GP services.”
First-term federal Labor MPs Sarah Witty and Jo Briskey, whose electorates take in the affected clinics, said the cuts to one of the city’s oldest free medical institutions had caused dismay to their constituents.
An emergency meeting held at the Fitzroy Town Hall for local residents about the closure of cohealth clinics on October 24.Credit: Eddie Jim
“We listened to people in our community, and our government has taken strong and immediate action to keep our vital health services,” Witty said.
Witty won the seat of Melbourne from former Greens leader Adam Bandt at the May election.
Cohealth had blamed its planned cuts on inadequate Medicare rebates for complex patients – a federal responsibility – and a lack of state government funding to upgrade its Collingwood facility, which has leaking ceilings and cracked walls.
While the federal government has increased Medicare rebates, cohealth says its wraparound services are not suited for appointments billed at shorter intervals and that not enough money was left over to cover nurses, receptionists and other operating costs.
The provider’s deficit widened from $6 million to $7.4 million between 2023 and 2024, largely pegged to increased staffing costs.
State government funding to redevelop the Collingwood facility remains unresolved, and Bartholomeusz confirmed the board’s decision to close the aged building in mid-2026 still stood.
“We’re concerned about staff and client safety in that building,” she said.
The federal funding will run out four months before the next Victorian state election. Health is expected to be a key battleground and Labor is keen to regain the seat of Richmond – which takes in the Collingwood and Fitzroy clinics – from the Greens.
The proposed changes to cohealth triggered public meetings and protests in Fitzroy and Kensington.
The federal and state governments were under pressure from the Greens, the Coalition and a local campaign led by outspoken Yarra Mayor Stephen Jolly to find a solution to keep affected services running
Last month the Victorian Greens successfully moved a motion in state parliament calling on the government to step in with an emergency package for cohealth, with $4 million to save GP and counselling services and at least $25 million to upgrade the Collingwood site. The motion was supported by the Coalition and members of the crossbench. Labor MPs did not oppose the motion, but the state government has not pledged any additional money so far.
The federal government has pledged to work with the Allan government to commission a review of cohealth’s operations. That review is expected to release its findings before July next year.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.
Read the full article here
