A severe shortage of housing in Canberra and Queanbeyan is creating a critical bottleneck in the hospital system, with patients occupying expensive acute care beds for weeks because they have nowhere else to go, according to health advocates.
‘Circa-$1000-a-day bed in lieu of rent’
Official Visitor for Mental Health Geoff Dulhunty told an ACT Legislative Assembly hearing in November that one client of the independent advocacy service had spent three weeks in an acute mental health bed solely because their house was unliveable and required repairs.
"The [patient] does not need to be in an acute mental health unit but there is nowhere for them to go," Mr Dulhunty said. "They are occupying an acute care bed, circa-$1000-a-day bed, in lieu of rent."
He emphasised this was not an isolated case, stating that a significant proportion of patients in the adult mental health rehabilitation unit could be living in the community if appropriate housing was available.
Discharged from hospital straight into a motel
The crisis extends beyond mental health. Elaine Lollback, coordinator of St Benedict's Community Centre in Queanbeyan, said people are regularly being discharged from Canberra hospitals into temporary hotel accommodation due to a complete lack of other options.
She described one case where a man who suffered a stroke was discharged from Canberra Hospital into a Queanbeyan motel. He had lost his shared accommodation after becoming ill, as his housemates did not want him to return.
"He was discharged out to a motel with no follow-up plan or support in place because he technically had a roof over his head," Ms Lollback said. The man and his son were then forced to walk 3.5 kilometres to the community centre for food and help finding long-term housing.
System under strain with no easy fixes
Canberra Health Services confirmed it occasionally discharges patients into hotels or hostels when clinically appropriate, but could not provide exact numbers. A spokesperson said this occurs when a patient is waiting for other services or accommodation, but must be able to self-manage and have a long-term plan.
The problem is multifaceted. ACT Health Minister Rachel Stephen-Smith has previously cited a lack of NDIS and aged care beds as contributing factors. As of December 16, 2025, about 24 patients across Canberra Health Services were waiting to transition to NDIS housing.
Official Visitor for Disability Kim Webster told the hearing that extended hospital stays and unsafe discharges are major issues for people with disabilities, who often wait for NDIS packages or necessary housing modifications.
Ms Lollback warned the situation could force people into homelessness after a health crisis, citing examples of people undergoing severe cancer treatment sleeping in cars. "On the day the cancer treatment stopped, they're back out in the car," she said.
The situation highlights a dire intersection between the region's housing crisis and its healthcare system, with vulnerable patients bearing the brunt of the failure.
