How much does private rehab cost in Melbourne?

There are many factors to consider when researching private rehabs in Melbourne and cost is often one of the major ones. At an already stressful time, trying to figure out and understand all the financial variables along with the types of treatment can be challenging.

Let us try to break it down a bit for you.

What does private rehab cost in Melbourne?

Self-funded inpatient rehab at a private psychiatric hospital in Melbourne typically runs from $700 – $900 per day, or about $20, 000 – $25,000 for a 28 day program. This cost depends on the facility and the level of clinical care. If you have private health insurance that includes cover for private psychiatric hospitals your out of pocket cost is usually a fraction of that. You will then just need to cover the policy excess and the gap payment, which at Arrow Health starts from $3778 depending on your level of cover.

If you’re trying to budget and realistically consider all the treatment options available, this is the realistic range you’re working with in Victoria.

Why is the range so wide?

There are a handful of reasons that the price can move:

• Whether you’re covered by private health insurance. This is the single biggest factor. It’s the difference between having to pay $20,000 or $3000
• Program length. 15, 30, 60, and 90 day programs are available at most private rehabs. There is generally a day rate associated with each stay and so the duration of the program admission impacts the total cost
• Whether the facility is an accredited private hospital or a residential-style rehab. Hospital-based programs include medical detox, 24/7 nursing care and psychiatric oversight in the daily rate. Some residential programs price these separately or don’t offer them at all
• Day program vs. Inpatient. Day programs generally cost less as you are not living onsite, whereas a residential admission means that all your associated living costs are also included in your treatment daily rate

What does it actually cost at Arrow Health?

It can be difficult to find information about the costs associated with specific private hospitals in Melbourne. The cost is generally quoted after an assessment, as the out of pocket expenses rely so heavily on the level of private health cover available. We aim to be as transparent as possible about our programs and their associated costs as much as possible and below is a general guide to the costs of our programs.

Program	Self Funded
Inpatient (residential)	$810/day
Day program	$428/day
Outpatient program (12 online sessions)	$2500

Please see our fees and payments page for more information or call us (03) 9533 7888 to find out more about DVA and TAC arrangements, payment plan options, and other options that may be available to you.

Does private health insurance cover rehab in Melbourne?

Often it does, but not automatically, and not to the same extent on every policy. Addiction or substance use disorder treatment is typically classified under private psychiatric hospital admissions. Cover is then dependent on your policy’s hospital tier and any restrictions or exclusions attached to it.

Arrow Health is a private health fund endorsed facility and we can run a free eligibility check over the phone.

What if I can’t afford private health insurance, or don’t have it?

Cost shouldn’t be the reason someone doesn’t get help. There are several funding pathways into treatment, and it’s common that families end up using a combination of them.

Payment plans through MediPay

Arrow Health works with MediPay, a payment provider offering pre-approved financing between $2000 and $55,000. If approved the treatment costs are paid directly to Arrow Health, and you then repay MediPay in installments up to 48 months. This may suit people who don’t have private health insurance, or whose cover doesn’t fully close the gap, but who don’t want to delay treatment while they wait to save.

Accessing your superannuation

Many people don’t realise they can apply to access their own superannuation early to pay for rehab. Under the Australian Taxation Office’s compassionate release of super provisions, you may be able to withdraw super early to pay for medical treatment including addiction treatment, whereby it’s necessary to treat a life-threatening illness, acute or chronic pain, or an acute or chronic mental illness, and that treatment isn’t readily available through the public system.

To apply you generally need:

• Two medical reports. At least one from a specialist confirming the treatment is necessary and not readily available through the public health system
• An unpaid invoice or quote. The applications are for expenses that haven’t been paid
• Evidence you have no other reasonable way to pay, alongside any other eligibility criteria the ATO requests

Approval isn’t guaranteed, and the ATO can take time to process an application. This route is worth starting early, rather than treating it as a same-day solution. It’s also advisable to speak with a financial advisor or accountant first, given the long-term impacts of reducing your super balance. Arrow Health’s team can assist with providing documentation a treating specialist needs as part of an assessment, but the application itself needs to be lodged by the applicant with the ATO directly.

Public and not-for-profit pathways

If private treatment isn’t financially accessible right now, Victoria’s public AOD system and not-for-profit providers are a genuine option. Some not-for-profit therapeutic communities operate with government funding and Centrelink contributions rather than out of pocket payments. There is generally a longer wait for a bed than with private admissions. For some families where finances are the primary barrier to receiving treatment these options can be the right starting point while arranging other funding options.

DVA funding for veterans

If you’re a current or former Australian Defence Force member you may be entitled to fully funded treatment through the Department of Veterans’ Affairs, and it’s worth checking even if you’re not sure you qualify.

• Gold Card holders have all mental health treatment, including addiction treatment, fully funded, regardless of whether the condition is related to service
• White Card holders are generally covered for accepted service-related conditions – but there’s an important exception. Under Non-Liability Health Care (NLHC), any current or former full-time ADF member, including reservists with at least one day of continuous full-time service, can access fully funded treatment for any mental health condition, including substance use disorder, without needing to prove it was caused by service and without going through a formal DVA claim first.

Arrow Health accepts DVA-funded admissions. If you’re unsure which card you hold or whether NLHC applies to you, our intake team can help you work through it.

TAC funding for transport accident claims

If your substance use developed as a direct result of a transport accident, for example dependency on pain medication prescribed after an accident, the Transport Accident Commission (TAC) can fund drug and alcohol treatment as part of your recovery. This needs to be recommended by your treating doctor, psychologist or psychiatrist, and approved by TAC.

It is worth knowing before you enquire, TAC generally funds this kind of treatment through the public AOD services first. Funding for a private provider is considered on a case-by-case basis, typically where a public option isn’t accessible within a reasonable timeframe. It could still be worth a conversation, particularly if you’re already a TAC client and your treating team can make the case for it.