Why are Private Psychiatry Fees high? Costs explained.

At Blue Fig Clinic, a small family-run practice, we are deeply committed to providing high-quality, personalised mental health care. Our goal is not only to offer exceptional care but also to help our patients and their families feel informed, supported, and respected throughout their mental health journey

We understand that the cost of psychiatric services can feel high, and we want to be as transparent as possible about why this is the case.

Specialist Expertise and Personalised Care

Psychiatrists are highly trained medical doctors who have undergone at least a decade of education and clinical experience (often more than 12 years). Their work involves complex assessment, diagnosis, and management of mental health conditions, often integrating medical and psychological expertise. The care provided reflects a deep level of expertise, tailored to your specific mental health needs. Consultations are typically longer and more in-depth than those in many other healthcare fields.

What Your Fees Support: The Real Costs of Running a Private Psychiatry Clinic

As a small, independent clinic, we do not receive the same level of funding or institutional support as public services. Running a high-quality, safe, and compliant face-to-face psychiatry practice involves significant behind-the-scenes costs that go far beyond the consultation itself. Some of the key ongoing expenses include:

Staff and Physical Clinic costs

• Staff Salaries and wages: Highly skilled administration and reception staff ensure smooth operations, communication, billing, and patient support. Bookkeepers and accountants also support compliance. All our staff are based in Australia (usually local to the clinic).

• Clinic Lease or Mortgage: Many private clinics operate in commercial premises that incur significant lease or ownership costs.

• Utilities, Equipment, and Maintenance: Includes everything from air-conditioning and cleaning to clinical equipment, furnishings, printers, and consumables.

• Clinic/Premise costs: Amenities, Council taxes, Compliance, insurance costs.

  
  

Technology Infrastructure, Security and Compliance

• Practice Management Software: Secure systems for appointments, clinical records, billing, and communication—all integrated with Medicare and compliant with data security regulations.

• Secure Data Storage: Storage of your health records must meet Australian Privacy Principles (APPs), including encrypted backups, access logs, and redundancy systems.

• Technology Infrastructure: Costs associated with encrypted email servers, secure telehealth platforms, two-factor authentication, and electronic prescribing tools.

• Regulatory Compliance: Adhering to national medical regulations, privacy laws, and professional board requirements requires regular investment in policy management, audits, and accreditation processes.

  
  

Clinical and Professional Requirements

• Professional Indemnity Insurance: Mandatory for all psychiatrists in private practice to ensure clinical and legal safety.

• Ongoing Professional Development & Supervision: Psychiatrists are required to undertake continuous education, peer review, and supervision to stay up to date with the latest research and clinical standards.

• Non-Contact Time: Time spent writing reports and letters to your referrer, preparing case notes, liaising with GPs, reviewing referrals, and managing patient safety concerns —all of which are critical to your care but not billable. 

Supporting Access and Continuity

Unlike public mental health services, which are often stretched and limited by waitlists, private psychiatry provides faster access and continuity with the same clinician—something many patients find crucial for building trust and long-term progress. Your fees help us reduce wait times and offer ongoing, consistent care. 

What If Private Care Feels Out of Reach?

We understand that for many individuals and families, the cost of private psychiatry can be a significant concern. If it feels unaffordable, there are alternative pathways to access mental health support:

Exploring Government-Funded Mental Health Services

The Australian Government has recently introduced Medicare Mental Health Centres to enhance access to free or low-cost care (https://www.health.gov.au/our-work/medicare-mental-health-centres). These centres may offer:

• Support from psychologists, mental health nurses, social workers, and care coordinators

• Free services for individuals who meet eligibility criteria

  
  

However, these services usually do not include access to a psychiatrist or may only offer limited access.

We encourage you to speak with your GP or explore options such as:

• Head to Health centres

• Medicare Mental Health Centres

• Local Primary Health Networks and NGOs

• Federally funded telehealth mental health providers

  
  

While these services provide valuable support, they are not a substitute for psychiatric care, which remains a vital part of the mental health system.

Encouraging a Fairer Mental Health System

As a community, we can also work towards more equitable access to psychiatric care. We invite you to consider writing to your local Federal Minister to:

• Advocate for higher Medicare rebates for psychiatric consultations.

• Advocate for higher Medicare rebates for face-to-face psychiatric consultations.

• Emphasise the importance of preserving access to private psychiatry as part of a well-rounded healthcare system.

  
  

Medicare should empower all Australians—not just those in public systems—to access timely, appropriate, and professional mental health support when they need it most.

We encourage families to write to their local state and federal members to:

• Request higher Medicare rebates for psychiatric care 

• Lower the Extended Medicare Safety Net threshold so more Australians get timely support

• Protect access to private care as a crucial part of the healthcare system

  
  

Medicare is more than government-run clinics — it should be a system that supports all Australians to access the level of care they need, when they need it.

Conclusion

Private psychiatry fees may seem high, but they reflect extensive specialist training, time-intensive care, and the significant costs of running a safe and compliant clinic.

These costs include professional indemnity insurance, ongoing education, non-billable clinical work, staff salaries, clinic rent, utilities, and technology infrastructure such as secure data systems and Telehealth platforms. Unlike Telehealth-only services, face-to-face clinics bear higher overheads but offer continuity and depth of care in a trusted physical setting.

For those who find private care unaffordable, government-funded services like Medicare Mental Health Centres provide limited support (often excluding psychiatrist access). Blue Fig Clinic encourages patients to advocate for fairer mental health funding, such as better Medicare rebates and expanded access to private psychiatric care, to ensure all Australians receive timely, appropriate support.