The company behind Sunshine Private Hospital in Melbourne's west has entered voluntary administration, forcing hospital management to cancel surgeries and move patients to other hospitals.

In a statement from Wexted Advisors, administrators said funding to continue to operate the hospital was not available, leading to administrators winding down operations.

"The administrators have commenced working with management to cancel day surgery operations, notify the Victorian Department of Health, and relocate patients to other hospitals," the statement said.

"Limited staff have been retained to assist with patient care and oversee an orderly wind down of hospital operations over the next few days."

The 51-bed hospital was officially opened by St Albans MP Natalie Suleyman in March 2023 and was advertised as Australia’s first fully electric private hospital.

In a statement, the Department of Health and Aged Care said the decision to close was ultimately a matter for the company.

"The Australian Government is unable to intervene in this decision. Patients, carers and their families are encouraged to speak with their doctors and the operators of the hospital," a department spokesperson said.

Fertility specialist Gareth Weston, who worked at Sunshine Private Hospital, said staff were given very little notice ahead of the announcement.

"We got about 12 hours' notice," Dr Weston told ABC Melbourne radio.

"I can't really comment about the reasons behind the decision by the hospital owners to close in such a dramatic and rapid way. It certainly wasn't convenient or desirable for us or for our patients."

Dr Weston said there was enough capacity across the system to transfer IVF patients to other hospitals to continue their treatment.

He said he believed the closure had nothing to do with the quality of the facilities or the care provided, but rather it was financially driven.

"It's a business decision based on the fact they were not able to generate profit at the site," Dr Weston said.

"I think that when you're looking at opening a private hospital in a relatively underprivileged part of Melbourne, you probably want to do your due diligence and scale up slowly."

Australian Nursing and Midwifery Federation secretary Lisa Fitzpatrick questioned the closure of the hospital and said support would be offered for the union's members.

"At a time when private health insurance companies are making record profits we'd like to know why they cannot keep their hospital doors open," Ms Fitzpatrick said.

"This will be a distressing and uncertain time for our members. We'll be organising a meeting as soon as possible with our members and the administrators. We will support our members through every step of this process."

The hospital was operated by Unitas Healthcare — a Melbourne-based healthcare company that was to be its major tenant under a 30-year lease.

The $140 million building is owned by Australian Unity, which said the other businesses inside the complex were open and continued to see patients.

"Sunshine Private Hospital is one tenant in the multi-tenanted Sunshine Private Health hub—the other tenants in the building remain open and seeing patients, as the voluntary administration progresses," an Australian Unity spokesperson said.