TORONTO Private Hospital will close its three surgical theatres and concentrate on better provision of its other services.
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Most of the surgical services offered at Toronto were orthopaedics, plastic surgery, eye surgery and some general surgeries including urology.
Health Care Group Australia, the owner of the hospital, said operating the three surgical theatres had become unsustainable.
Group chief executive Steve Atkins told the Newcastle Herald the hospital would retain and expand its rehabilitation unit, mental health services and medical patient services [acute medicine].
"Effectively, Toronto has run a sub-scale service despite the great staff and dedicated doctors," Mr Atkins said.
"We want to run centres of excellence but it has become harder to do that at optimal and sustainable levels. We want to focus on those other services that we can do very well. We have three theatres, but in reality the amount of surgery we were performing would only keep one busy. We can't sustain that."
The closure is expected to put up to 40 people out of work.
The hospital is the only significant health facility on the western side of Lake Macquarie.