[2] In 1996 plans by the Victorian State Government of Jeff Kennett to privatise the hospital[3][4] were leaked to the press.

Most hospital staff opposed this plan, but being bound by confidentiality agreements dared not speak out publicly fearing for their own jobs.

In January 2005, Dr Brendan Murphy was appointed CEO, and on 7 May 2005, the Mercy Hospital for Women fulfilled a long-term plan and finally opened at Heidelberg.

[needs update] The hospital provides the only Victorian-wide service for acute spinal injuries, liver transplant[6] and is the state referral centre for toxicology.

[15] Since then The University of Melbourne Departments of Medicine, Surgery, Psychiatry, Psychology and Physiotherapy have established at Austin Health, with other tertiary institutions affiliated including Royal Melbourne Institute of Technology, and La Trobe University for allied health programs.

The Olivia Newton-John Cancer Wellness and Research Centre[16] is based on the Austin Heidelberg site covering 24,000m2.

[17] It was completed in late 2012 and opened in 2013[18] as the result of a combination of government and philanthropic support, as well as donations from 200,000 members of the public totalling $17 million.