The Kaoriki Unit, a 12-bed neuropsychiatry facility at Morisset Hospital, will cease operations next week, marking the end of a 24-year service that supported some of the most vulnerable patients in New South Wales. Internal documents from Hunter New England Health, obtained by the Newcastle Herald, reveal that the unit will stop admitting patients from Thursday, with plans to discharge the remaining patients in the coming weeks.
The Kaoriki Unit was specifically designed for individuals with acquired brain injuries and conditions such as severe autism and Huntington’s disease. An insider described the closure as “very sad,” emphasizing that it was the only neuropsychiatry inpatient unit in the state’s public healthcare system. “We cared for and treated some of the most vulnerable patients in the state—effectively defining person-centred care,” the insider stated.
Documentation from Hunter New England Health acknowledged “the outstanding contributions of the Kaoriki team over the years and the compassionate care and support provided.” Another internal memo indicated that the closure was nearing inevitability due to the forthcoming disposal of the Morisset site. Although this decision refers to the removal of services rather than a sale, it raises questions about the future of the 1,244-hectare lakeside property.
Concerns about the site’s redevelopment plans have emerged, with speculation about a potential transformation into a residential area dubbed “Trinity Point 2.0.” This would require significant rezoning efforts, likely facing heritage and conservation challenges. Meanwhile, a new Myuna Bay Sport and Recreation Centre is planned on seven hectares of the hospital site.
Critics of the closure argue that it reflects a shift from a public healthcare model to a private, user-pays system. An insider pointed out that the government may attribute the closure to a psychiatrist’s resignation earlier this year, stating, “That is absolutely not true. This has been in the works for years and represents a model-of-care change.” Instead, Hunter New England Health has indicated that the service will transition to providing inpatient care through enhanced consultation and liaison with other units within the health district.
Despite assurances that “there are no job losses due to these changes,” the closure of the Kaoriki Unit is particularly alarming for staff and community members. The insider noted the unit’s unique architecture, featuring high ceilings and large rooms adorned with works from artists like Picasso and van Gogh. The unit’s gardens, cultivated and maintained by nursing staff, have provided a tranquil retreat for the remaining patients.
The loss of 12 mental health beds has been described as “shocking,” with a tribute paid to the dedication of nursing staff and the unit’s medical director, Dr. Peter Schofield, throughout its 24 years of operation. Many in the community who have had family members treated at the Kaoriki Unit are expected to be deeply saddened by this decision.
Morisset Hospital continues to operate the Kestrel Unit, a 30-bed medium-security service that is also slated for relocation to a new mental health centre at the Maitland Hospital campus by 2027. This planned facility will feature 24 low-secure forensic beds, 20 medium secure beds, and 20 high-support beds. However, local objections to this plan have raised doubts about its future.
Planning documents related to the Maitland facility were publicly exhibited in March and April 2025, inviting community feedback. The government has indicated that construction timelines will be shared once a builder is appointed and the construction program is confirmed.
Hunter New England Health has been contacted for further comment on the Kaoriki Unit’s closure and the associated changes to mental health services in the area.
