The high-profile Canberra practice placed in voluntary administration two weeks ago will reopen, at least in the short term, under a deal with an unnamed private operator.

But the practice, which universally bulk-billed its 4900 patients and offers drug and alcohol services as well as gender-affirming care, has also secured a pledge of a further $3.8 million from the Federal Government to keep it afloat long-term.

It had relied on Medicare rebates, a handful of government grants and controversially for a bulk-billing practice, annual membership fees of $60 or $120.

But it called in administrator firm RSM, saying that with a vulnerable patient cohort, the clinic’s business model could no longer “meet current market rates and conditions to attract much-needed doctors into our practice”.