Calvary considers new Launceston hospital at aged care site

Catholic healthcare provider Calvary Health Care is considering a new private hospital development in Tasmania's north, two years after abandoning a previous $130 million project. The organization is investigating redeveloping its Sandhill Residential Aged Care site in South Launceston, a move that would involve a rezoning application to the Launceston City Council. Existing aged care facilities at the Sandhill site are expected to remain.

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So the real risk here then is that that infrastructure fails. And that would effectively mean that there'd be no major elective surgery happening in Launceston in a private hospital.

This potential development has been met with cautious optimism by some healthcare advocates. They point to the aging infrastructure at Calvary's two existing Launceston hospitals, St Luke's and St Vincent's. Last year, St Luke's had to close three operating theatres due to flooring issues, necessitating patient transfers and the use of temporary modular theatres. Dr. Michael Lumsden-Steel, spokesperson for Australian Medical Association Tasmania, warned that the failure of this aging infrastructure could halt private elective surgery in Launceston.

However, the proposed location has drawn some criticism. Jerome Muir Wilson of the Launceston Health Hub suggested that while a hospital at Sandhill might suit some medical or palliative care patients, it is not ideal for a surgical hospital. He advocated for a new private hospital to be situated adjacent to the public Launceston General Hospital, facilitating seamless patient transitions between public and private care.

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They [Calvary] mentioned they're exploring Sandhill … as an option.

Calvary Health Care has requested feedback from Launceston-based visiting medical officers on the Sandhill site proposal and its broader clinical services plan by September 7. This comes despite Calvary reporting significant financial losses since 2019, with deficits totaling hundreds of millions of dollars in recent years. The company cited "insurmountable budget pressures" when it withdrew from its previous hospital plans in 2024.

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That way, there's no wrong front door if someone goes into an emergency department. They can be a public patient one way or a private patient the other way.