WA's health minister says private health insurers and the federal government need to improve coverage for mental health care after a Perth facility said it had been forced to close because its business was not financially viable.
The privately operated Bethesda Clinic opened in Cockburn in Perth's southern suburbs in March last year, but has stopped taking referrals and will close on February 23.
The operator said it was closing because of a lack of psychiatrists willing to admit in-patients under their care and insufficient private health rebates to cover their service.
Health Minister Amber-Jade Sanderson has called on the federal government and private health insurers to address issues in the system.
"There's certainly more remuneration for psychiatrists to treat patients in their rooms and not do in-patient work," she said.
"Work needs to be done by the private health funds and the Commonwealth government around the Medicare rebate, for that work.
"Currently the private health funds pay below break-even for those in-patient consultations so that really needs to be strongly addressed."
It had been hoped the $60 million, 75-bed Bethesda Clinic would help address growing demand for mental health services.
Bethesda's chief executive Dr Neale Fong previously told ABC Radio Perth that, even if health insurers paid 85 per cent of the cost of a stay, the hospital would still run at a loss.
Loading...The clinic never had more than 27 patients despite its 75-bed capacity.
The health minister said the state government was in discussions about the future of the facility.
"We're working closely with Bethesda about how we can best utilise that facility and maintain its accessibility and availability to the community," Ms Sanderson said.
"It is a good facility and we certainly don't want to see it sitting empty for long."
About 70 staff will be made redundant due to the closure.