Interchange Health Cooperative services will resume soon. Photo: Facebook.
Failed Tuggeranong bulk-billing allied health and general medical practice Interchange Health Cooperative Ltd (IHCO) has been resuscitated in a temporary deal administrators have negotiated with a private operator, while Federal Labor has pledged $3.8 million through the local Primary Health Network to ensure Interchange’s long-term future, if re-elected.
The licence agreement will mean IHCO’s trading and clinical operations can resume soon, at a date the unnamed new operators will relay to the 4900 patients on the practice’s books, who include some of Canberra’s most vulnerable people.
The six-year-old 100 per cent bulk-billed practice at South.Point called in administrators from RSM Australia on 7 April.
IHCO operations ceased late on 7 April, with RSM Australia Partner Jonathon Colbran and Director Adam Cormack appointed joint and several voluntary administrators at a board meeting soon after.
IHCO said at the time that its current business model was no longer sustainable, and it had become increasingly difficult to recruit doctors to the practice.
It had been heavily reliant on Medicare rebates, a small number of government project grants, and membership fees to sustain its services, and it had been extremely challenging to raise sufficient income to cover true operational costs.
The administrators still need to find a permanent buyer, but it does mean the clinic has been licensed, which will make it easier to sell, as does the Labor funding.
Mr Colbran said the return of services was an important step forward in providing IHCO patients with continuity of care while a permanent buyer was sought for the clinic.
“We understand the significant impact the sudden closure of the IHCO has had on the community – among undertaking other urgent work with the support of former volunteer board members and our skeleton staff of former employees, we have prioritised finding an immediate solution to resume IHCO services,” Mr Colbran said.
“We’ve been working closely with the new operator since Friday afternoon, when the licence agreement was signed, to complete a handover of the practice.
“Existing patients will be contacted directly by the operator regarding the return of services, including further details regarding booking appointments, in due course.”
A spokesperson for the administrators could not say if the unnamed new operators would be in contention to buy the practice.
Federal Labour said that from the moment the IHCO closed its doors, the Albanese Government had been working to find a solution to ensure continuity of care for existing patients and to safeguard the long-term future of the IHCO.
It welcomed the announcement that a new service provider had confirmed it will immediately take over the running of the service, allowing doors to reopen.
The funding was contingent on the provider maintaining operations for at least three years and the practice remaining 100 per cent bulk billed during that time.
Federal Labor MPs David Smith, Andrew Leigh and Alicia Payne with Senator Katy Gallagher. The funding solution will ensure IHCO continues to bulk bill their services. Photo: Region.
Federal Labor said the funding would assist the new provider to attract and retain additional GPs, and renovate the clinic.
ACT Senator Katy Gallagher said the funding solution would ensure Interchange keep its doors open now and into the future and continues to bulk bill their services.
“Canberrans deserve access to free, high-quality healthcare close to home, and I wanted to work hard to deliver a solution that meant there was minimal interruption for local patients,” she said.
Labor Member for Bean David Smith, who is fighting a spirited challenge from Independent Jessie Price this election, said he and Senator Gallagher had been working hard to get this outcome for the community.
“We recognise how valued this service is and wanted to ensure that we could work towards a sustainable, ongoing solution that focused on the patients,” he said.
“This isn’t just a good outcome for Bean constituents but an example of our commitment to deliver for all Australians.”
ACT Health Minister Rachel Stephen-Smith said the twin announcements were a positive outcome for the Tuggeranong community and welcome news for the thousands of Interchange Health Cooperative patients.
Ms Stephen-Smith said ACT Health teams would continue to work with the reopened Interchange and other primary care providers to support consumers with complex health care needs, including those on opioid maintenance therapy.
“I thank the administrators for their work in securing a sustainable path forward, and I acknowledge the dedication of the Interchange staff and clinicians who have continued to provide care during this challenging time,” she said.
She thanked the intake team at Canberra Health Services Alcohol and Drug Services, Canberra Alliance for Harm Minimisation and Advocacy, Winnunga Nimmityjah, Directions Health Services, the Capital Health Network and Commonwealth Government who have worked together over the last couple of weeks to ensure patients could receive the care they needed during this difficult period.
Mr Colbran said patients could send enquiries to a dedicated hotline and email, and RSM will ensure these are provided to the new operator.
The new operators would focus on prioritising patients, including those with complex health needs, including alcohol and drug dependencies, mental health concerns and chronic conditions.
If patients wish to have their patient records returned before operations recommence, they can email a request to IHCOPatients@rsm.com.au.
Creditors impacted by the administration can contact RSM IHCOCreditors@rsm.com.au or phone o3 9286 8230.
