Cohealth to end GP services at three Melbourne clinics amid funding crisis

Community health provider Cohealth has announced it will end GP services at its Collingwood, Fitzroy, and Kensington sites in December 2025, with the Collingwood clinic at 365 Hoddle St set to close completely by
mid-2026.

The not-for-profit organisation, which provides essential healthcare to thousands of vulnerable Victorians, said the move was a last resort after years of unsustainable funding and rising operational pressures.

Cohealth is now appealing for federal government support to help maintain its GP services, which cater to more than 12,500 Victorians experiencing homelessness, trauma, mental illness, chronic disease, or family violence.

According to the organisation, the current Medicare funding model fails to reflect the complex, time-intensive, and coordinated nature of the care required by its clients.

“The current Medicare funding model does not support the way our GPs work,” Cohealth said in a statement. “Despite our best efforts to make Medicare work, it simply does not cover the cost of care.”

Cohealth chief executive Nicole Bartholomeusz said the decision to wind back services had been “extraordinarily difficult” but “unavoidable.”

“These GP services have been part of the fabric of Collingwood, Fitzroy and Kensington for decades, and we know the impact will be deeply felt,” Ms Bartholomeusz said.

“This decision reflects multiple, complex pressures, including decades of underinvestment, ageing infrastructure, and a funding model that doesn’t match the reality of the need or the type of care required.”

She said the withdrawal of GP services would have significant flow-on effects for the broader health system.

“We are funded for standard care, but we’re servicing extraordinary need,” she said. “Every day, our GPs are delivering complex, person-centred care for vulnerable Victorians who face some of the greatest barriers to health.”

The closure are expected to place further strain on hospital emergency departments and other public health services as patients struggle to find affordable, ongoing care.

CBD News spoke with Cohealth patient Xantia Stavely, following the announcement of the closure of the clinics.

Ms Stavely is a young Aboriginal woman with a disability, history of drug use, trauma, mental and physical health conditions and living in homeless accommodation. Cohealth was the first service that provided her with non-judgmental care.

She said that at other clinics she was told that there was nothing they could do to help, was refused scans and was advised that her condition was “just anxiety”.

However, the doctors at Cohealth took the time to help Ms Stavely and to determine that she was suffering from a range of chronic illnesses, including chronic fatigue.

“To have a dedicated service who understands my complex history, has cultural awareness, and awareness of the financial and social difficulties of the community … is what makes it a significantly important service different from any other, and should be celebrated and protected,” she said. •