Calvary considers new Launceston hospital at aged care site

Calvary Health Care considers new Launceston hospital at aged care site In short: Catholic health provider Calvary has confirmed it is considering a new hospital in Launceston, which would be co-located with an aged care home. It comes two years after Calvary scrapped plans for a new hospital next to the public Launceston General Hospital. What's next: Calvary Health Care has submitted a land use strategy for its Sandhill Residential Aged Care site in South Launceston, and is exploring a rezoning application to be considered by the Launceton City Council. A Catholic health care provider has confirmed it is considering building a new private hospital in Tasmania's north, two years after it cancelled plans for a $130 million development. Calvary Health Care said it was investigating redeveloping its Sandhill Residential Aged Care site in South Launceston to include a new hospital. A spokesperson said the organisation had submitted a land use strategy for the site and was exploring a rezoning application to be considered by the Launceston City Council. It is understood the existing aged care facilities would be retained. The news has been welcomed by some healthcare advocates, who have become increasingly concerned by the aging state of Calvary's two Launceston hospitals, St Luke's and St Vincent's. Last year, Calvary was forced to close three surgical operating theatres at St Luke's hospital after rips were found in the flooring. While modular theatres were set up and patients diverted to St Vincent's hospital, some have warned it is also aging. "So the real risk here then is that that infrastructure fails," Australian Medical Association Tasmania spokesperson Dr Michael Lumsden-Steel said. "And that would effectively mean that there'd be no major elective surgery happening in Launceston in a private hospital." The Launceston Health Hub's Jerome Muir Wilson said he discussed the idea of a new hospital at the Sandhill site with Calvary Health Care chief executive Damien Bruce when the two met in Launceston yesterday. "They [Calvary] mentioned they're exploring Sandhill … as an option." Dr Muir Wilson said while the model may work for some medical or palliative care patients, he said he did not make sense to put a surgical hospital next to an aged care home. He said having a new private hospital next to the public Launceston General Hospital, which Calvary had been planning in 2024, would be ideal. "That way, there's no wrong front door if someone goes into an emergency department," he said. "They can be a public patient one way or a private patient the other way." A Calvary spokesperson said Launceston-based visiting medical officers had been asked to give feedback on its idea for the Sandhill site, and the organisation's wider clinical services plan, by September 7. Budget questioned When Calvary withdrew from plans for a new private hospital beside the Launceston General Hospital in 2024 just months before work was set to start, it cited "insurmountable budget pressures". Financial documents show those pressures have continued; Calvary has reported losses since 2019, with deficits of $138 million in 2025, $144 million in 2024, and $377 million in 2023. But private health insurer St Lukes chief executive Paul Lupo, who also met with Mr Bruce yesterday, said investing in its infrastructure in Launceston would improve Calvary's position in the long run. "There is no doubt that the assets in the north would be a drain on their financial position," Mr Lupo said. "So I think if we can get over the hurdle of attracting some capital for them to renew the asset, that will actually make Calvary more sustainable going forward." Mr Lupo said he hoped a decision on further Calvary investment in Tasmania's north would be made quickly. "If I had my way it would have been about five years ago," he said. "[Their current hospitals have] aging infrastructure and the implication of that is high maintenance, high disruption, a higher cost to maintain. "Which means that the price that they require for services is greater than it could be if it was in a more modern and well-appointed hospital. "And what that means is that it's more costly for Tasmanians." More clarity on healthcare future Dr Lumsden-Steel said he hoped the state government was speaking with Calvary about how any future planned investment could also benefit the overwhelmed Launceston General Hospital. While there are two other private hospital plans in the works for Launceston — with the state government wanting to partner with the private sector on a 250-bed facility and Dr Muir Wilson's Launceston Health Hub pushing for a two-stage development — there has been little progress on these in the past year. Dr Muir Wilson said there was room for more than one private hospital in the city. "We need to be able to attract and retain the best doctors. And currently the infrastructure in town is getting old," he said. "So whether that's our private hospital or Calvary's plan, Launceston just desperately needs a new hospital." Along with the two Launceston private hospitals, Calvary Health Care also operates two hospitals in Hobart — Calvary Lenah Valley and St John's in South Hobart. Its proposal to take over the Hobart Private Hospital following the collapse of Healthscope is being considered by the Australian Competition and Consumer Commission. [Image text:] Calvary Sandhill Residential Aged Care 25Waveney St