//Issues of standards, consenting and contractual arrangements at a private rehabilitation facility

Issues of standards, consenting and contractual arrangements at a private rehabilitation facility

24 September 2025


The Office of the Health Ombudsman (OHO) initiated an investigation following a complaint related to a private rehabilitation facility which specialised in drug and alcohol addiction. These residential facilities are not generally subject to the same level of regulation and oversight as private and public hospitals. Transparency and accountability for processes is particularly important when treatment is being provided to vulnerable consumers.

Wider learnings and recommendations for service improvements

The investigation identified opportunities for improvement and proposed recommendations. The investigation highlighted:

  • Information provided to consumers to enable them to provide their informed consent to treatment needs to be understandable, transparent and provided in a form which is appropriate for the consumer.
  • Those seeking treatment for drug and alcohol addiction represent a vulnerable patient group and accordingly, there is increased risk of consumers not fully understanding the services offered before signing the contract for services with the provider.
  • The role of the next of kin as set out in the provider’s contract can be confusing when the consumer has capacity at the time of signing the contract. This should be clearly explained to everyone involved in the process.
  • Consumers should be encouraged to seek independent advice before accessing funds from superannuation to pay for services and providers should ensure appropriate safeguards and there are no conflicts of interest in information that is provided to consumers about the processes for requesting a release of superannuation funds.

Read the snapshot report (PDF 122KB)