THE operators of Essendon Private Hospital say they had “no choice” but to implement a hospital restructure that will result in the loss of 70 jobs.

The Independent Private Hospital of Australia will temporarily close Essendon Private while it undergoes refurbishments before reopening as a dedicated mental health facility.

Chief executive Tom Wenkart said it was “an unfortunate situation and it would never have happened” had a contentious enterprise bargaining agreement not been accepted in 2012.

Dr Wenkart said the union had been told for years that the hospital could not afford the wage increases outlined in the agreement, which was appealed at court three times before it was mandated.

“It’s been a nightmare that should never have taken place,” he said.

“We have an obligation, whether it’s private or public, to not run a hospital at a loss on that basis alone, what do you do in the end? If you’ve got to change it, you’ve got to be prepared to take it on the chin, which we did.

“The demand for mental health services is enormous, which we hope will give more sustainability for the viability and future of the hospital.”

He rejected the Australian Nursing and Midwifery Federation’s claims that up to 110 jobs would be lost and instead said it was 40 nurses and 30 non-clinical support staff.

Dr Wenkart said staff had been told they were able to apply for positions at the new hospital once it reopened and the hospital would employ based on merit.

Earlier:

UP TO 110 staff could lose their jobs on the eve of Christmas under an Essendon Private Hospital restructure, a union says.

Australian Nursing and Midwifery Federation state branch assistant secretary Paul Gilbert said they were supporting employees who had been told they would be made redundant on December 18.

“This is terrible news for anyone to receive just a month ahead of Christmas,” Mr Gilbert said.

“There is apprehension and a sadness amongst the nurses and midwives losing their jobs. Many have dedicated their entire careers to Essendon Private Hospital and now find themselves at the end of their careers with little likelihood of being hired by another hospital.”

The federation believes the Independent Private Hospital of Australia (IPHOA) will temporarily close Essendon Private for six months while it undergoes refurbishments before reopening as a dedicated mental health facility.

Mr Gilbert said they understood the hospital was no longer profitable under its current system.

He said despite employees offering to be flexible during the closure, including taking approved unpaid leave, staff had not been offered new positions when it reopened.

“Mental health nursing is a specialty area quite different to medical and surgical nursing and not all nursing staff would be suitable or want to work in that area,” Mr Gilbert said.

“We are aware that some staff have given over 30 years of service to this hospital. They have been told that there are no options for redeployment within (the operator’s) network of hospitals.

“It’s a shameful way for nurses and midwives to be treated by management.”

The federation is also helping nine staff from Melbourne Eastern Private Hospital, who will be made redundant on December 16 due to the hospital changing to a day surgery hospital.

Mr Gilbert said the federation was keen to continue negotiating with management because some staff had expressed a desire to return to Essendon.

“We’re calling on IPHOA to treat their staff with respect and sit down with us to develop flexible arrangements so experienced staff can return to Essendon Private once the work is completed,” he said.

The hospital did not respond to Leader’s calls for comment.