Calvary Health Care eyes new private hospital on aged-care site in Launceston

Catholic provider Calvary Health Care is studying a plan to add a private hospital to its Sandhill aged-care campus in South Launceston, after abandoning a previous $130 million project.

Calvary Health Care announced it is evaluating a proposal to construct a private hospital on its Sandhill Residential Aged Care site in South Launceston, submitting a land-use strategy and pursuing rezoning through the city council. The plan would retain the current aged-care facilities while adding hospital capacity, a move praised by some health advocates concerned about the aging infrastructure at Calvary’s St Luke’s and St Vincent’s hospitals, the latter having recently lost three operating theatres.

Discussions with Launceston Health Hub’s Jerome Muir Wilson highlighted preferences for a location adjacent to the public Launceston General Hospital rather than next to aged-care. Calvary cited “insurmountable budget pressures” when it cancelled a prior $130 million hospital project, and its financial statements show deficits of $138 million in 2025, $144 million in 2024 and $377 million in 2023. Private insurer St Lukes’ chief Paul Lupo said new facilities could reduce costs for Tasmanians by modernising assets. The proposal joins other private-hospital initiatives in the region, while Calvary also seeks to acquire Hobart Private Hospital pending regulator review.