Avive Health, private mental health services group will open its second mental health hospital in Melbourne, as demand for mental healthcare continues to outpace capacity across Victoria.
The hospital, named ‘Avive Clinic Melbourne’, is located in Alphington approximately 20 minutes drive from Melbourne CBD, with a total project value of $45 million.
Initially, Avive Clinic Melbourne will deliver 30 beds for specialist care following a $15 million upgrade of the former property at 9-11 Old Heidelberg Road. This investment is focused on clinical infrastructure upgrades, improving therapeutic spaces and creating outdoor areas to align with Avive Health’s care model that designs spaces conducive to healing.
There are plans to expand bed capacity as well as upgrade fitness facilities, central to rehabilitation models. Avive’s approach to launch approach enables new capacity to be added faster than traditional hospital developments, responding to growing demand.
The new hospital expands Avive’s existing footprint in Victoria where it operates a hospital in Mount Eliza on the Mornington Peninsula. It also has a hospital in Brisbane in Queensland, with both operating at high capacity.
Avive Health Co-founder and Co-CEO, Greg Procter, said the opening of the new hospital addresses both access to care and the quality of the treatment environment:
“Mental health demand has increased significantly, and the system has not kept pace, resulting in access delays and pressure across the system ultimately meaning people are not able to access the support they need. Our new facility directly addresses this crucial challenge, which is particularly acute in Melbourne, by offering a best-in-class facility and innovative treatments that prioritise long-term recovery of our patients.”
The new facility will increase Avive’s Victorian inpatient capacity to 120 beds across two hospitals and support approximately 2,000 admissions annually across metropolitan Melbourne, the Mornington Peninsula and surrounding regions, with further opportunities to access support through day programs, private practice, and telehealth across metropolitan, rural and regional Australia.
Avive Clinic Melbourne is part of Avive’s broader integrated mental health ecosystem, connecting inpatient care with structured day programs, outpatient psychiatry and virtual care to support patients beyond discharge and improve long-term recovery outcomes.
Stage one of the opening will include:
Mr Procter said Avive’s model focuses on both clinical care and the environment in which it is delivered.
“At Avive, we are challenging the traditional mental health ward model, as we have seen first-hand that purpose-built environments combined with integrated care can support a patient;s recovery. We do this by replacing sterile wards with calming, human spaces including private rooms, abundant natural light, and integrated wellness facilities. Our newest hospital in Melbourne reflects our belief that the physical environment is a critical therapeutic tool in the healing process and is a key clinical anchor within Avive’s expanding, integrated ecosystem of care.”
Demand for inpatient, day program and community-based mental health services continues to grow across metropolitan Melbourne. However, despite strong psychiatric capability across Victoria, inpatient capacity has remained relatively constrained, contributing to delays in admission and flow-on pressure across both public and private systems.
Avive continues to expand its suite of services including providing access to the next generation of evidence based treatments. This week, it will extend transcranial magnetic stimulation (TMS) to its Mornington Peninsula Clinic for people experiencing symptoms of depression that have not responded well to medications or therapy. TMS, which is already used in Avive’s Brisbane clinic, is an effective treatment for treatment-resistant depression and anxiety and offers Avive patients a non-invasive method to stimulate brain areas involved in mood regulation.
Across Avive’s Victorian footprint, care pathways span inpatient treatment, structured day programs, outpatient psychiatry and telehealth services, designed to support continuity of care beyond hospital admission.
Other assisted therapies where clinically appropriate and permitted, include emerging treatments such as psychedelic-assisted therapy delivered within regulated clinical frameworks.
Avive Clinic Melbourne is a non-acute, voluntary facility and will provide specialist inpatient care for adults experiencing:
Inpatient admissions and outpatient appointments at Avive Clinic Melbourne are expected to commence in mid-2026.
Media enquiries
Michelle Lawrence, Avive Health
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