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Authorities claim that the 27-year-old supposedly utilized a phone to secretly film within a private staff restroom at Austin Hospital in Heidelberg on July 3.
According to police, the device is thought to have been installed “for some time” before it was discovered by employees.
Today, officers carried out a search warrant at a residence in Heidelberg West.
The man was arrested and is now being interviewed.
No charges have been laid.
A spokesperson for Austin Health said it was taking the matter “extremely seriously”.
“We take the safety and wellbeing of our staff extremely seriously and recently made a formal report to Victoria Police,” the spokesperson said.
“As this matter is now with the police, we are not able to share more information about the nature of the report.”