The RSPCA veterinary hospital at Tighes Hill will close down on December 1, with services to be diverted to an expanded Hunter shelter in Maitland.
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As well as being a vet hospital, the Elizabeth Street facility also operates as an impound facility for the council, which will continue operation until the end of the financial year.
An RSPCA spokesperson said the closure was due to an expansion of its Hunter Veterinary Hospital at Rutherford to "create a state-of-the-art facility for veterinary services in the greater Hunter/Newcastle region".
"This will include the addition of consultation rooms, facilities for surgical offerings and a variety of specialised services for animals in the area," the spokesperson said.
"We have identified a need for these services to be available, and we hope that by expanding the facility and centralising our services and staff, we can help more people help more animals.
Tighes Hill vet staff currently work out of both Hunter and Tighes Hill, and will work out of the Hunter Vet Hospital, where they will treat both pets and shelter animals.
Clients of the vet hospital will have their vet appointments, with their usual vet, transferred automatically to the Hunter Vet Hospital.
The expansion of the Hunter shelter was made possible by a bequest from the late Sheila Woodcock, who was a passionate animal lover.
"Maitland is the fastest growing regional city in NSW, and the Hunter Veterinary Hospital expansions will allow the rapidly growing community to access these services," the spokesperson said.
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