A senior government staffer was hired by the embattled community health provider, cohealth, months after representing the state government in key meetings to decide the not-for-profit’s governance and financial lifelines.
Melissa Arch was the long-serving chief of staff for former Health Minister Mary-Anne Thomas, and worked by her side to examine the serious cultural and management issues that cohealth faced and attempted to overcome last year.
Thomas stepped down from her ministerial position in April after announcing she would not recontest her seat at the November 28 election.
Arch’s LinkedIn profile indicates that she finished working for the government in July before shortly being appointed as a client participation and partnerships executive at cohealth, which operates general practitioner services for low-income residents primarily across Collingwood, Fitzroy and Kensington.
The turnaround between her role as a senior adviser and working for an organisation receiving critical government funding has called into question whether there is a real or perceived conflict of interest regarding the appointment.
Thomas’ ministerial diary disclosures from 2025 show two occasions when Arch attended meetings with cohealth executives and the health minister – a meeting on October 30, in which Thomas told parliament that the discussions included engaging with the federal health minister’s office in relation to funding issues, and another meeting on November 11.
These two meetings were attended by cohealth’s former chief executive Nicole Bartholomeusz, former deputy chief executive Christopher Turner and former chair Kerry Thompson, who have all since left the organisation.
In May, a month after Thomas’ resignation from cabinet, the state government helped secure a $1.5 million federal bailout for cohealth – while Arch was still working for the government.
In June, an independent report into the community health provider identified a “litany of failures” from within the organisation, prompting the federal government to recommend that former Harriet Shing, a former Victorian health minister and Thomas’ successor, issue the cohealth board a final formal warning.
Chief executive at Transparency International Australia Clancy Moore said there was potential for a perceived conflict of interest in Arch’s hiring because while governance risks are most severe in instances where former government staff return to direct lobbying roles, they can still impact positions with a broader remit.
“We always suggest there should be a cooling-off period for senior public servants, chiefs of staff, or ministers particularly to prohibit post-parliamentary employment in lobbying roles. This should be for a minimum of three years to stop unfair influence and access,” Moore said.
There is currently no mandated cooling-off period for senior government staffers in Victoria, with the exception of some lobbying activities.
“Conflicts of interest can generally be managed through transparency and clear processes to ensure former officials don’t use or abuse their influence, access and knowledge of government to unfairly benefit their new employer,” Moore said.
A cohealth spokesperson told The Age the organisation “rejects the suggestion of any conflict of interest in relation to Melissa’s interim appointment”.
“Since joining cohealth, Melissa has adhered to the same professional, ethical and confidentiality obligations that apply to all cohealth executives,” they said.
A Victorian government spokesperson did not comment on Arch’s appointment, and said cohealth’s employment decisions are an internal matter.
Melissa Arch was approached directly, but declined to comment on the record.
Cohealth is currently recruiting for a newly created “executive client participation and partnerships” role. According to internal correspondence seen by The Age, the full-time fixed-term position boasts an annual remuneration package approaching $300,000 once tax offsets due to its charity status are included.
An online listing for the role called for candidates with more than 10 years of senior leadership experience, as well as familiarity with government relations, media and public affairs. Applications closed last week.
Arch is believed to be the preferred option for the position, according to a source with knowledge of hiring processes but not authorised to speak publicly.
A cohealth spokesperson told The Age that the role was created in direct response to recommendations in the recent independent review, and that the remuneration package is standard for a senior executive role at similarly sized not-for-profit organisations.
“The creation of this dedicated client participation and partnerships position reinforces cohealth’s ongoing commitment to organisational renewal and strengthening community and client engagement,” they said.
“Over the coming months, cohealth will continue the transition towards a permanent leadership team, with all permanent executive roles, including this position and that of chief executive officer, progressing through open and competitive recruitment processes.”
Last year, cohealth experienced a period of highly publicised community backlash following a decision to axe free medical services and its Collingwood clinic to deal with financial pressures.
The services were ultimately saved by the last-minute federal funding pledge.
A spokesperson from the federal Department of Health, Disability and Ageing said cohealth recruitment and employment decisions were a matter for the board.
“It is the responsibility of cohealth to identify, declare and appropriately manage any actual, potential or perceived conflicts of interest. The department expects all organisations receiving Commonwealth funding to have appropriate arrangements in place,” they said.
Questions surrounding overspending continue to plague the community health provider. The Age previously reported the high remuneration packages for senior staff, thousands spent on recruitment for a senior role, and an estimated $288,000 on external crisis communication fees over eight months.
Victorian assistant branch secretary at the Australian Services Union Phillipa Balk said that despite repeated claims of funding cuts, cohealth’s high spending was “an absolute gut-punch” to union and community members.
“Every single dollar poured into fancy consultants and executive roles is a dollar taken directly away from frontline healthcare and community support,” Balk said. “It turns out cohealth doesn’t have a funding crisis; it has a priority crisis.”
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