Katie Rose Cottage Hospice has temporarily suspended patient admissions as funding shortfalls and revised government timelines place growing pressure on the Noosa-based end-of-life care provider.
The hospice confirmed it is facing significant financial and infrastructure challenges, including major changes to Federal Government funding conditions that have affected plans for its Stage Two development.
Following a recent meeting with federal departmental representatives, the hospice was advised that the previously agreed project completion deadline has been brought forward.
While civil works were originally scheduled for completion by 31 May 2026, the project must now be finished by 31 March 2026 to allow for auditing, ministerial review and final approval by 30 June 2026.
The hospice said the revised deadline is final and not open to extension.
With earthworks yet to begin and essential preparatory work – including site clearing and tree removal – still outstanding, the organisation now concedes it is unlikely Stage Two can proceed under the new timeframe.
Funding pressures have intensified the situation.
Katie Rose Cottage Hospice operates under a mixed funding model, with Queensland Government funding covering only around one third of nursing costs.
All remaining nursing expenses and operational costs are reliant on community donations, fundraising, and revenue from the hospice’s op shops and warehouse sales.
Over the six months to 31 December 2025, the hospice experienced a sharp decline in donations, significantly impacting its financial sustainability. It has also been advised that no increase in state funding – previously anticipated as part of Stage Two – will be provided at this time.
As a result, the hospice has made what it described as a difficult but responsible decision to pause admissions, saying patient care can only resume when funding allows services to be delivered safely and sustainably.
Op shops and warehouse sales will continue operating and remain critical to the hospice’s survival. The board and leadership team are actively exploring options to stabilise funding and secure the future of the service.
The hospice said urgent community and donor support is now needed to ensure it can continue caring for families during some of life’s most difficult moments.
