Centuria Healthcare to Build a $64m Hospital for doctor-led JV with Medibank

• Brand new short-stay private hospital in Kew, Melbourne
• Hospital to provide no-gap treatments to eligible patients
• Centuria to develop and retain ownership of the hospital upon completion
• Centuria Healthcare AUM grows to c.$1.0 billion

Centuria Healthcare, has entered into a partnership with a specialist doctor-led Joint Venture (JV) entity that will deliver a new, $64million¹ short-stay private hospital in Kew, Melbourne.

Forty-two (42) specialist doctors have formed a JV with Medibank to develop the new short-stay surgical facility, providing no gap treatments to eligible patients.

Centuria Healthcare will develop and retain ownership of the property, with the JV committing to a long-term 15-year lease.

Andrew Hemming, Centuria Healthcare Managing Director, said “We are delighted to partner with the joint venture doctors and Medibank to develop and own the real estate delivering this new short-stay surgical facility. This is a transformative project that can change the landscape of the healthcare sector and we are pleased to be the real estate partner of this forward-thinking project.

“The project is central to Centuria Healthcare’s strategy to partner with top-tier operators backed by secure lease covenants. We are focused on providing modern healthcare real estate investments across Australia and currently have c.$1.0 billion worth of these assets under management.”

Spokesperson for the investing doctors, Professor Michael Grigg, said, “This is a significant investment in Australian healthcare. We are committed to delivering short-stay models of care where clinically appropriate, across many surgery types, with reduced or no gaps for eligible patients. We are proud to partner with Medibank and Centuria in this new facility where doctors will have much greater input into the operation of the hospital.”

Medibank Group Executive Healthcare & Strategy Dr Andrew Wilson, commented, “We have long said that affordability in the private health system needs to be addressed. Out-of-pocket costs are a big part of that. Our investment is aimed at supporting our doctor partners to deliver a short-stay model of care that is already widely available at scale in other health systems internationally.”

The new Kew short-stay hospital is planned to offer four operating theatres and a procedure room, 30 beds, radiology, an infusion (chemo) clinic and 90 basement car parking spaces.

The facility proposes to provide services such as orthopaedics, Ear, Nose and Throat (ENT), vascular, plastics, general surgery, urology, gastroenterology, anaesthetics, oncology, and radiology.

The development of the facility is subject to completion of the acquisition and obtaining all necessary planning and licensing approvals.

1. Estimated on completion value