Recommendation 11

New models of care for bed‑based services

Status: In progress

What the Royal Commission said

The Royal Commission recommended that the Victorian Government:

  • review, reform and implement new models of multidisciplinary care for bed-based services that are delivered in a range of settings, including in a person's home and in fit-for-purpose community and hospital environments.

deliver a broad range of bed-based services, including as a matter of immediate priority:

  1. expanding Hospital in the Home services as an alternative to acute hospital-based treatment, care and support where appropriate;
  2. investing in a wide range of time-limited and flexible residential respite services informed by local priorities, including establishing a peer-led residential respite service at a demonstration site; and
  3. developing new bed-based rehabilitation services (refer to Recommendation 12).
  • build on the Interim Report's Recommendation 2 about the need for the expansion of acute mental health services and deliver at least 100 additional beds in settings that reflect optimal allocation and distribution across Victoria.
  • periodically review the allocation of new beds as part of the statewide and regional planning processes recommended by the Royal Commission (refer to Recommendation 47) and audit the outcomes.

What we’ve achieved

Bed expansion

The Victorian Government has delivered more than 180 new acute public mental health beds (including Hospital in the Home beds), with 50 more funded in the 2026-27 State Budget and expanded access to acute care and supporting demand management across the system. These new beds include:

  • 16 beds at McKellar Centre-Barwon Health
  • 30 beds at Northern Health
  • 22 beds at Royal Melbourne Hospital - Melbourne Health
  • 52 beds at Sunshine Hospital - Western Health

35 beds through the Women’s Recovery Network delivered by Goulburn Valley Health and Alfred Health

29 Hospital in the Home beds at Barwon Health, Parkville Youth Mental Health and Wellbeing Service and Western Health.

The 2026-27 State Budget invests almost $155 million to ensure continued access to mental health hospital in the home beds, 10 new hospital in the home beds for Monash Health and to deliver 40 new Forensic mental health beds at Thomas Embling Hospital.

Statewide Mental Health and Wellbeing Service and Capital Plan

  • Victoria released its first Statewide Mental Health and Wellbeing Service and Capital Plan in October 2024.
  • The Plan uses evidence and data to help guide future mental health services, including acute mental health care. It looks at projected demand based on population needs, growth, and changing demographics, to help ensure services are planned in the right places and for the future.

What we’re doing

Bed expansion

As part of broader hospital developments, additional acute mental health beds have been delivered or are in development, including:

  • new mental health inpatient units built as part of the New Footscray Hospital and Peninsula University Hospital redevelopments
  • 10 HITH Beds established at Western Health in 2025-26 and a further 10 HITH beds to be established at Monash Health as part of the 2026-27 State Budget
  • 25 mental health beds to be delivered at Melton Hospital
  • planning underway for new beds at Shepparton.

Updated