The University of Melbourne has announced it will hand over operation of the U-Vet Werribee Animal Hospital — Victoria's only teaching hospital — to a private provider in 2023.
On Wednesday, staff at the clinic were told the university would stop running the hospital by the end of next week.
It will be taken over by private provider Greencross Pet Wellness Company from mid-January, with the hospital's the 24-hour emergency clinic to continue operating.
Dozens of staff members are facing redundancy, according to the National Tertiary Education Union (NTEU), with those employed at the hospital told they will need to re-apply for their jobs.
U-Vet is Victoria's only dedicated teaching hospital, which the university said had been struggling with a significant fall in revenue and a decreased case load.
In a statement, the university said students would still get their practical experience at the clinic.
Melbourne University Vice-Chancellor Duncan Maskell said a number of university staff would work with Greencross to provide clinical teaching.
"This agreement will benefit the university's students who will be exposed to a broader range of clinical opportunities and local pet owners who will have access to a veterinary hospital with increased opening hours and more extensive services," Professor Maskell said.
Greencross General Manager of Specialty and Emergency David Mason told ABC Radio Melbourne the company has been collaborating with Melbourne University for many years.
He said he doesn't expect the clinic's fees to increase significantly when it moves into private hands.
"The university has actually charged relatively commercial rates all the way along, just because they've not wanted to undercut the local vets in the area," he said.
Dr Mason said there is currently a big shortage of vets and Greencross wants to support new practitioners.
'I could potentially be jobless'
Taylor Reader, who is employed at the hospital, said she was very upset by the university's decision.
"If I do want to re-apply for the new hospital I will have to apply along with everybody else … we don't know how many positions there are so I could potentially be jobless in 2023," she said.
"A week before Christmas, [to hear] I will potentially be jobless next year, it's quite stressful.
"It's going to be a very stressful new year."
The NTEU described the move as "heartbreaking."
"A university with billions in funding that purports to be for the public good needs a higher standard of transparency, accountability to its staff, students, alumni and community," University of Melbourne NTEU branch president Annette Herrera said.
"We call on the university to ensure redundancy packages are honoured for those who want to leave."
Last week, following about a month of negotiation, staff at the animal hospital lodged concerns with the Fair Work Commission over the proposal to close the hospital.
