The future of La Trobe Private Hospital, in the grounds of La Trobe University at Bundoora, is in doubt after Healthe Care Australia shut it down last month.
Star Weekly understands that negotiations between the university and an alternative hospital and health services provider, Healthscope, have now also fallen through.
The university has faced mounting criticism over the past week after its efforts to guarantee a seamless handover of the hospital to a new operator failed, despite months of warning.
The university has been accused of dumping Healthe Care for a higher-paying lessee.
Healthe Care’s lease of the hospital service was due to expire next year anyway and no right of renewal was offered.
Instead, the university set up a competitive tendering process.
The Healthe Care board decided not to participate and the university began negotiations with Healthscope.
Despite the breakdown of those talks, a university spokesman said negotiations were continuing with other companies and it expected to appoint a new provider soon.
But Health Workers Union president David Eden said the closure of a centre the size of
La Trobe Private placed greater pressure on nearby hospitals.
Mr Eden said the union had a good working relationship with the management of the hospital and all workers losing jobs had been paid redundancies.
But he said many of Melbourne’s health professionals were looking elsewhere for jobs as the impact of federal budget cuts deepened.
Up to 150 jobs hang in the balance because of La Trobe Private’s closure, and local health providers who service the 100 or so operations performed at the hospital each week will be hit.