Medibank partners with doctors to support care models for the future in South Australia
Medibank’s Amplar Health business and a doctor-led group today announced a joint venture to acquire Western Hospital in Henley Beach, South Australia.
The investment is part of a broader financial package to support the future of the 50-year-old hospital, including a $3 million government grant over the next two years.
Both private and public patients in Adelaide’s western suburbs are set to benefit, with the joint venture to upgrade the existing hospital to deliver short stay procedures in areas including orthopaedics, gastroenterology, ophthalmology and general surgery.
Following an initial investment of around $4 million, the joint venture will convert the hospital into a short stay surgical centre with 4 operating theatres, a procedure room and 24 beds.
The investment will also support improvements to patient experience, including an upgrade of key facilities to meet growing demand for orthopaedic procedures and more streamlined admission and discharge processes.
Under the joint venture, the hospital will remain a private facility while continuing to support some public patients to reduce pressure on local public hospitals.
Western Hospital, which is the only private hospital in the western suburbs of Adelaide, entered administration in January 2024. The 11-member doctor group owns 51% of the joint venture while Medibank holds a 49% minority stake.
Orthopaedic surgeon Dr Nick Pourgiezis said the group of investing doctors looked forward to more patients having access to a short stay surgical model.
“Short stay is centred around patients through a combination of innovation in surgery and tailored care and support through their entire experience. We’re so pleased to help more people access this contemporary care model and to provide more doctors with the facilities to offer it,” Dr Pourgiezis said.
Medibank’s Chief Executive of Amplar Health Robert Read said the joint venture’s investment would help to put the hospital on a more sustainable footing for the future.
“Western Hospital has served Adelaide’s western suburbs for more than 50 years and it is a privilege to be part of this next phase in its history,” Mr Read said.
A stronger Western will ensure the community can access innovative care models both in hospital and while they recover in the comfort of their home where clinically appropriate. We welcome this opportunity to work alongside SA Health and be part of its progressive approach to healthcare.
"Our investment in these care models is about driving Australia’s health transition forward for the benefit of patients, providers and the sustainability of the entire health system."
The South Australian Government welcomed the investment.
“Today is a great day for the western suburbs, with Western Hospital to continue to operate in Henley Beach,” SA Treasurer Stephen Mullighan said.
“Since Western Hospital entered voluntary administration, the Malinauskas Labor Government has been working hard with the administrators to ensure this important hospital continued to operate.
“It is not only good news for people in the western suburbs, but the ongoing operation of the hospital will also help ease the pressure on our public hospital system,” the Treasurer said.
“This is excellent news for private patients in the western suburbs who will be able to receive surgery at their local hospital. Importantly we will also be working with the hospital to use its spare capacity to help reduce public surgery waiting lists. I want to thank the Treasurer in particular for his work to ensure this hospital survives into the future,” SA Health Minister Chris Picton said.
“SA Health already works closely with Amplar Health and Medibank on the delivery of home hospital services, and we now look forward to working closely with them at Western Hospital to benefit western suburbs residents.”
David Swan has been appointed the interim Chief Executive Officer of Western Hospital, providing continuity for employees and the community. Mr Swan has been the acting Chief Executive of Western Health since appointed by the Administrators in January 2024. He brings extensive expertise to the role, with more than 25 years of experience leading major public and private sector hospitals.
Medibank and Amplar Health will have no involvement in clinical care decisions, which will remain between patients and their treating doctors.
Western Hospital will remain operational during works, which are expected to be finalised by mid-2025.
The joint venture adds to Medibank’s ongoing support for care models for the future, which includes investments in short stay and integrated mental health hospitals. In South Australia, Medibank’s Amplar Health delivers the My Home Hospital service through a joint venture with Calvary Health Care, as well as services through the South Australian Community Care (SACC) program.
