WA Government to purchase St John of God Mt Lawley Hospital

Negotiations are underway between St John of God Health Care and the Western Australian Government to purchase St John of God Mt Lawley Hospital.

Pending negotiations, the transition of the private hospital into the public health system is expected to be complete in 2026. In the meantime, it will continue to provide both private and public healthcare services under contract.

The hospital will operate as a public hospital and continue to be used for the delivery of vital health services, ensuring its long-standing role in the community is maintained.

St John of God Health Care Group Chief Executive Officer Bryan Pyne said the negotiations with the State reflect St John of God Health Care’s strong commitment to ensuring Perth’s health facilities and services are aligned with the changing population and healthcare needs.

“Over time, Perth’s population has grown and shifted, and that has changed where and how people need care,” Mr Pyne said.

“We’ve seen a reduction in demand for private hospital services in the Mt Lawley area, which is already well served by St John of God Health Care and other private hospitals, while at the same time there is growing demand for private care at our Subiaco, Murdoch and Midland hospitals,” he said.

Mr Pyne said the organisation is also responding to rapid population growth in Perth’s eastern corridor, which is driving investment in new facilities.

“We’re also seeing rapid growth in population across Perth’s eastern corridor which is why St John of God Health Care is relocating and developing an expanded new Midland Private Hospital – a brand new, state-of-the-art standalone private hospital that will support the current and future health care needs of Perth’s eastern suburbs and the wider Wheatbelt region,” he said.

Mr Pyne said Mt Lawley Hospital already plays an essential role in the delivery of public services with a significant amount of the 197 hospital beds used to deliver public services.

“Publicly funded services include the Ursula Frayne Unit which provides public inpatient services and recovery-focused care for older adults with mental health needs, reflecting St John of God Health Care’s responsiveness to community need and its strong partnership with the public system.”

These beds will become part of what will be the newly badged public hospital in Mt Lawley.

“The proposed transfer of Mt Lawley Hospital to the State would ensure the ongoing provision of essential public health services to the community, while allowing St John of God Health Care to focus on addressing the increasing private health care needs across Perth’s growing population including in the eastern suburbs,” Mr Pyne said.

“We also anticipate expanding our flagship St John of God Subiaco Hospital following the almost completed stage 2 development and upgrade happening there.”

Mr Pyne said St John of God Health Care is committed to supporting its caregivers and specialists through the transition process.

“A significant number of caregivers will be provided the opportunity to take up positions at the new Midland Private Hospital once it opens in 2026,” he said.

“We are proud of Mt Lawley’s long legacy of care and are deeply grateful to our caregivers and specialists for their ongoing commitment to patients and to providing healing, hope and dignity. We ask for their continued commitment during this transition.”

Further details about the proposed transition are expected to be clarified and confirmed over the coming months.