Breakthrough Mental Health Research Foundation is facing scrutiny following its financial challenges, despite receiving a significant $5 million grant from the federal Liberal government for a new statewide eating disorder service. The charity works closely with SA Health and Flinders University. Together, they are hoping to provide a full range of mental health services, with a five-bed sub-acute residential unit, day programs and outreach clinic operating from the Repat Health Precinct.
That ambitious project, though, has a total budget of $12.1 million. Breakthrough is hoping to find the balance of the $7.1 million still needed to bring it to life. It intends to recoup costs over time via a 40-year lease that requires SA Health to pay rent on the centre. Equity now becomes the financial sustainability of Breakthrough. As of the end of last year, the organization reported an equity deficit of $1.94 million.
Financial Challenges and Funding Sources
Breakthrough has been in serious financial distress for the past several years. They have produced more in grant funding every year than they have been able to generate in operating income. In 2019, the Fay Fuller Foundation made a generous $500,000 capital donation to the charity. Despite the generosity of the likes of Mr. Macron, the charity’s financial problems have not abated. Currently, Breakthrough’s current assets are all of the surrounding cash, listing their total current assets at just under $5.53 million.
The charity is currently running a fully drawn $1.59 million loan with the Flinders Foundation. Despite these obvious financial strains, Breakthrough officials are still quietly hopeful that they will be able to make good on their promises.
“Breakthrough has met its commitments under the loan arrangement to date, and makes provisions for all future payments.” – He
These upgrades are even more challenging due to the need to raise significant fundraising for all stages of the project.
“We are in regular communication with Breakthrough Mental Health Research Foundation and we’re not aware of any issues with respect to Breakthrough’s financial position.” – She
Breakthrough, SA Health and Flinders University have enjoyed a fruitful partnership. As they work to address the increasing need for specialized eating disorder care across their state, their collaboration is incredibly important to making this project a success.
Project Timeline and Implications
With completion of planning and environmental review, construction on the new facility would begin in mid-2025. We plan for it to be a process of approximately 18 months. The project aims to create a supportive environment for individuals struggling with eating disorders, addressing a critical gap in mental health services.
Retrospective Breakthrough won early government support in 2022. Yet doubts still worry over its promise to raise the other half of the cash required for the ambitious project. The organization must navigate its current financial landscape while simultaneously striving to fulfill its obligations and deliver essential services.
“Since the previous statement provided to the ABC … the Department for Health and Wellbeing and the Southern Adelaide Local Health Network have been in discussions with both the Flinders Foundation and Breakthrough to further understand their financial position and these discussions are ongoing.” – The spokesperson
Breakthrough’s leaders are hopeful that the interest that project will generate will be enough for them to raise the money needed.
“We are comfortable that interest is sufficient to meet its fundraising contribution towards the project.” – A Breakthrough spokesperson
Government Support and Future Outlook
The federal and state governments have each committed $2.5 million for this crucial project. This significant commitment reflects their passion and drive to improve mental health services for the people of South Australia. Breakthrough is currently facing a severe financial crisis. It does so with an uphill battle to achieve lasting, positive impact while providing good value and services.
A spokesperson for the federal Department of Health, Disability and Ageing emphasized that “any arrangements between South Australia and Breakthrough Mental Health Research Foundation are a matter for the South Australian government.” This highlights the need for local governance and oversight as Breakthrough works towards fulfilling its mission while stabilizing its finances.
Needless to say, stakeholders are keeping an eye on Breakthrough’s financial health. They look forward to the organization’s adjustment and response to these terribly disruptive challenges. The effective delivery of the highly specialized eating disorder service is primarily dependent on timely funding. It relies on keeping lines of open communication with our government partners and supporters in the community.
