The Western Australian government has announced it will purchase Mt Lawley Hospital from St John of God Health Care for $80 million, a move designed to increase public hospital capacity in the state.
Details of the acquisition
The state government confirmed the buy-out on Tuesday, with Premier Roger Cook stating the acquisition would help alleviate pressure on the public health system. The hospital, located in Perth's inner-northern suburbs, will be converted into a public facility once the deal is finalized.
The $80 million price tag includes the hospital building, equipment, and land. The government plans to integrate the facility into the public health network, providing additional beds and services for patients.
Reasons for the purchase
Health Minister Amber-Jade Sanderson said the acquisition was part of the government's strategy to address growing demand for healthcare services. “This purchase will allow us to expand public hospital capacity and reduce waiting times for elective surgery and emergency care,” she said.
The hospital has 140 beds and includes operating theatres, an emergency department, and diagnostic services. It is expected to treat thousands of additional public patients each year once fully operational under state control.
Financial implications
The $80 million expenditure will be funded from the state's budget, with the government arguing it represents a cost-effective way to boost capacity compared to building a new hospital from scratch. The purchase is expected to be completed by mid-2025.
Opposition health spokeswoman Libby Mettam criticized the decision, questioning the value for money and noting that the hospital was previously a private facility. “Taxpayers are being asked to fork out $80 million for a hospital that was already serving the community,” she said.
The government defended the move, highlighting that the hospital had been operating below capacity under private ownership and that the state takeover would maximize its use for public patients.
Impact on healthcare services
The acquisition is part of a broader plan to strengthen the public health system in Western Australia. The government has also invested in new hospitals and upgrades to existing facilities across the state.
Local residents have expressed mixed reactions, with some welcoming the increased access to public healthcare while others worry about potential disruptions during the transition. The government has assured that services will continue without interruption.
The deal marks a significant shift in healthcare provision in the area, as the hospital transitions from a private to a public model. It remains to be seen how the purchase will affect waiting times and patient outcomes in the long term.
