Michael McKeown, 31, was found dead in a room at the Swanston Centre in Geelong, southwest of Melbourne, in the early hours of February 23.
Police on Thursday arrested Breakwater man Joel Steinbock, 31, in West Geelong and charged him with one count of murder.
He appeared before the Geelong Magistrates Court on Thursday afternoon.
Steinbock's lawyer told the court her client required anti-psychotic medication to treat his drug-induced psychosis diagnosis.
Steinbock is accused of killing Mr McKeown one day before his body was found, according to documents released by the court.
Magistrate John Lesser asked the prosecution how far along the investigation was, and queried whether any footage and forensic evidence needed to be further assessed.
"Quite a bit of forensics outstanding, Your Honour," the prosecutor replied.
Mr Lesser told Steinbock he could not apply for bail in the lower court during the hearing, due to the nature of the charges.
He said he would need to apply in the Supreme Court, should he wish to be released.
Steinbock will return to Geelong Magistrates Court on August 25.
Barwon Health, which runs the facility, in February confirmed an "unexpected death of an inpatient in the acute mental health ward", and extended condolences to family of the deceased patient.
The intensive mental health care centre has previously faced scrutiny over patient care and union calls for action on pay and occupational violence.
The Health and Community Services Union said the death reflected ongoing concerns about staffing levels, workplace safety and the ability of staff to care safely for patients.
In 2025, the health facility was charged under workplace laws after a patient died by suicide while undergoing treatment at the centre in 2022.
A 2024 coronial inquest was launched after a patient was discovered unresponsive by staff at the centre and later died.
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