Cohealth appoints new chair as GP review looms over future of inner-city clinics

Community health provider cohealth has appointed former Scope chief executive Kate MacRae as its new board chair, as an independent review into the organisation’s general practice model and finances continues amid uncertainty over the long-term future of several Melbourne clinics.

Cohealth announced the leadership change on January 7, confirming Ms MacRae will take over from outgoing chair Kerry Thompson, who has concluded a nine-year tenure on the board, most recently as chair.

The appointment comes at a pivotal moment for the not-for-profit, which is currently the subject of a jointly commissioned Commonwealth and Victorian government review examining its GP service model, governance and financial viability.

The review was announced in late November after cohealth revealed plans to close its general practice services in Fitzroy, Collingwood and Kensington, triggering widespread concern among patients and health advocates. Cohealth doesn’t currently run any GP services out of its CBD location on Victoria St.

The independent review is being led by health economist and primary care expert Professor Stephen Duckett, alongside Professor John Furler and community health leader and chartered accountant Jane Seeber. Specialist advisory firm McGrathNicol has been engaged to provide technical and financial assurance.

According to the federal government, the panel is assessing cohealth’s general practice service model, clinical operations, governance and financial sustainability, in the context of the organisation’s overall operations. Findings are expected by February 28, with stakeholder submissions open until January 27.

The review’s intended outcome is to develop options that support the continuation of services to the affected communities.

In response to the original closure plans, the Australian Government committed up to $1.5 million to maintain cohealth’s general practice services until July 31, 2026, providing a six-month reprieve while the review is under way. Cohealth has described the funding as short-term stability for clients and staff, rather than a permanent solution.

Cohealth chief executive Nicole Bartholomeusz previously said the organisation welcomed an independent assessment of GP-led complex care services, which it argues have been underfunded and unsustainable for many years.

“Our priority is ensuring that the thousands of vulnerable people who depend on complex, ongoing healthcare have continued access to services that are safe, connected and responsive,” Ms Bartholomeusz said when the review was announced.

Cohealth has also said it will support the review by providing access to financial and service information, staff and clients, and has stressed that any future model must be shaped by the needs and lived experience of patients.

Against that backdrop, Ms MacRae’s appointment signals an attempt to steady the organisation’s governance as it navigates a period of scrutiny and reform.

Cohealth said Ms Thompson’s “compassionate, values-led approach” had guided the organisation through significant growth and change while maintaining a commitment to community and equity, and thanked her for laying foundations for the next chapter.

Ms MacRae, who has held leadership roles across health, disability and community sectors, said she was drawn to cohealth because of its focus on community-based care and the importance of people feeling safe and respected when seeking support.

Her professional background includes working as an occupational therapist and later returning to Scope as chief executive, where she led the organisation through reform and service delivery in the disability sector.

In its announcement, cohealth highlighted Ms MacRae’s emphasis on inclusion, collaboration and multidisciplinary care, and her belief that working in partnership is essential to improving outcomes for communities.

The chair change also arrives as cohealth’s role in Melbourne’s CBD health response expands, with the organisation set to lead a new community health hub at 244 Flinders St, due to open this year. The state-backed facility will bring together medical care, mental health support, counselling, pharmacy services and social programs, alongside a Victorian-first hydromorphone treatment trial aimed at reducing harm by diverting people away from the illicit drug market.

The hub was announced after the state government ruled out establishing a medically supervised injecting service in the CBD, opting instead for a treatment and outreach model.

At a local government level, the debate over supervised injecting services has continued to flare, with the City of Melbourne voting late last year to overturn its previous support for a CBD facility, citing concerns about amenity and safety. Health and legal advocates have argued the policy shift should not be conflated with broader efforts to expand access to treatment and wraparound support.

For cohealth, the immediate question remains whether its GP services in Fitzroy, Collingwood and Kensington can be sustained beyond July, and under what funding and governance arrangements.

Health sector observers say the review’s focus on governance will be as significant as its analysis of the clinical model, given the challenge of balancing financial viability with the intensive, multidisciplinary care required by patients experiencing chronic illness, homelessness, addiction, trauma or mental ill-health.

One source told CBD News that considering cohealth’s multi-million-dollar losses in recent years, many questioned “why couldn’t they make this work?” given many other community health providers around Melbourne could.

Questions have also emerged around the organisation’s governance model, with concerns surrounding a self-appointing board and no membership base.

The federal government has said the review will examine cohealth’s service model and finances in the context of the whole organisation, with the panel inviting submissions that include case studies, research and ideas for sustainable and innovative primary health care. 

With the report not due until late February, and the funding extension running only until the end of July, Ms MacRae’s appointment lands as cohealth attempts to project stability to staff, patients and governments.

For now, cohealth is urging stakeholders to contribute to the review process, while signalling that a new chair will be tasked with guiding the organisation through what could become one of the most consequential restructures in its recent history. •