The immediate crisis surrounding The Hobart Clinic has been averted, with the Tasmanian Government offering $2 million in one-off transitional funding to keep the facility, Southern Tasmania’s sole private inpatient psychiatry provider, operating for the next six months.
The announcement by Minister Bridget Archer was immediately welcomed by the AMA Tasmania as a “vital and very welcome step” to prevent acutely unwell patients from overwhelming the Royal Hobart Hospital’s emergency department, and ensuring “continuity of care.” However, the political reaction was sharply divided, with Labor and Independent Peter George MHA claiming the funding was secured only “in spite of” the Minister, after intense pressure from advocates. The Greens welcomed the short-term measure but called it a mere “stopgap,” demanding a long-term increase in investment for the public mental health system.
Bridget Archer MHA, Minister for Health, Mental Health and Wellbeing, 14 October 2025
$2 million offered to keep the Hobart Clinic open
The Tasmanian Government will provide one-off, transitional funding of $2 million to The Hobart Clinic, enabling it to continue operating for the next six months.
The business support grant, which will be administered through the Department of State Growth, is subject to The Hobart Clinic’s agreement.
The grant will provide the Clinic with time to work on changes to its business model and ascertain if the business can operate sustainably without Government funding into the future.
The grant is subject to a number of terms to ensure that the quality of services, along with the health and safety of the Clinic’s consumers and staff, remains paramount, recognising the Government’s obligation to responsibly invest public money.
Once agreement is reached, the Government will immediately work with The Hobart Clinic on an appropriate deed, with the interests of patients and staff at the forefront.
Minister for Health, Mental Health and Wellbeing, Bridget Archer said while Labor are only interested in politics, we worked as quickly as possible to provide this funding, with appropriate safeguards in place to protect Tasmanians.
“This investment will allow The Hobart Clinic to keep the doors open for six months, giving them time to work through their operating model and ascertain if the business can be viable into the future,” Archer said.
“After six months, The Hobart Clinic must be able to demonstrate they can operate without Government assistance, as no further government funding will be available.
“I have communicated this to The Hobart Clinic Chair today and look forward to their prompt agreement, which will enable a Deed to be finalised as soon as possible.
“The Government will also continue working with other private providers to ensure the mental health needs of Tasmanians can be met in the private system into the future.
“We continue to boost capacity in the public system to address longer term needs, with our plans progressing for more mental health hubs, including in the Huon Valley and the new mental health precincts in the North and North West.”
Media release – Australian Nursing and Midwifery Federation Tasmanian Branch. 14 October 2025
AMA Tasmania welcomes Government support for The Hobart Clinic
AMA Tasmania President Dr Michael Lumsden-Steel today welcomed the Tasmanian Government’s announcement of $2 million in transitional funding to keep The Hobart Clinic open.
“This funding is a vital and very welcome step to ensure Southern Tasmania does not lose all of its private inpatient psychiatry capacity,” Lumsden-Steel said.
“The Hobart Clinic provides critical mental health care for the south, and its closure would have left patients without access to private inpatient treatment anywhere in the region.
“The Government’s decision recognises that this is not simply a private sector issue — if these beds had closed, acutely unwell patients would have ended up in the Royal Hobart Hospital emergency department, which is already stretched beyond capacity.
“This funding provides essential breathing space to stabilise services, retain our highly skilled clinicians and work together on a sustainable future for private mental health care in Tasmania.”
“AMA Tasmania thanks Minister Bridget Archer for her decisive intervention, and acknowledges the tireless advocacy of Dr Hannah Lake, Dr Rob Walters, Tim Booker, Robbie Moore (HACSU) and AMA Tasmania CEO Lara Giddings AO, whose collaboration helped secure this outcome for patients and staff.”
Dr Hannah Lake, psychiatrist and former Clinical Director of The Hobart Clinic, also welcomed the announcement:
“This decision brings great relief to both doctors and patients who rely on the Clinic’s services,” Lake said.
“It ensures continuity of care for vulnerable Tasmanians and gives the Clinic the stability it needs to plan its recovery.
“We look forward to working with government and colleagues on long-term solutions that keep private mental health care strong in Tasmania.”
Media release – Sarah Lovell MLC, Shadow Minister for Health, Mental Health and Wellbeing & Ageing, 14 October 2025
Hobart Clinic funding welcome, win for advocates who ensured Minister took action
Labor strongly welcomes today’s announcement that the Tasmanian Government is providing funding to keep the Hobart Clinic operating for the next six months.
This result is a huge win for the workforce, the clinicians and patients of the facility who didn’t give up and pushed the Minister to finally take action. Labor was proud to support these advocates every step of the way.
Like everything we see from this Liberal Government, it didn’t have to be so hard.
This outcome happened in spite of Minister Archer, not because of her.
Ensuring Tasmanians can access mental healthcare is responsibility of the State Government. The Minister’s comments that nothing could be done to keep the clinic open, and that the public system could absorb the additional patients have been proven incorrect.
It is hugely disappointing the Minister has chosen to accuse Labor of playing politics when we were merely asking her to do her job.
The Hobart Clinic’s potential closure has shone a light on the vulnerability of Tasmania’s mental healthcare system and it’s vital that the Government learns its lesson and lifts its game in making sure all Tasmanians who need to can access mental healthcare.
Media release – Cecily Rosol MHA, Greens Mental Health Spokesperson, 14 October 2025
Hobart Clinic Funding Welcomed
The Greens welcome the Liberal Government’s offer of funding to keep the Hobart Clinic open in the short-term. The Liberals must ensure Tasmanians have the mental health care they need in the long-term by increasing investment in the public system.
The public mental health system has been underfunded by the Liberals for years. Public mental health services haven’t been able to keep up with demand and Tasmanians are missing out on the help they need.
Private operators like the Hobart Clinic have provided much-needed mental health care for Tasmanians. The loss of this facility would only make things worse for Tasmanians desperately trying to access the care they need.
It’s welcome news that the Liberal Government has offered the Hobart Clinic funding to stay operational in the short term, while a long-term solution is found.
This funding is just a stopgap. The Liberals can’t keep relying on the private health system to provide the essential care Tasmanians need.
The Liberal Government needs to make long-term changes to ensure the public system can provide Tasmanians with the mental health care they need. They must increase investment in the public mental health care system.
Media release – Peter George MHA, independent for Franklin, 14 October 2025
Common sense prevails – The Hobart Clinic gains a lifeline
Independent MP for Franklin, Peter George, welcomes the government’s decision to throw the Hobart Clinic mental welfare facility a $2million lifeline.
“Despite the government’s initial reluctance to support planned restructuring of The Hobart Clinic, common sense has prevailed.
“It took the combined pressure of clinicians, unions, Labor and the crossbench to bring the government to its senses and to realise the importance of keeping the 27 beds open while a business restructure is investigated.
“Only five days ago Health Minister Bridget Archer told me she did not even want to call a roundtable conference to explore the possibilities while she contended the public health system would be able to absorb the additional load.
“I told her southern Tasmania simply can’t afford to lose more mental health capacity as demand grows across the region.
“I also believe practical politics has played a part in this outcome – how can the government withhold a $2million lifeline on mental health when it’s about to pull the trigger launching a massive spend on a sporting stadium at Macquarie Point that will cost billions?
Tasmanian Times (TT) is a community-based news and current affairs service covering the island state of Tasmania. It exists to provide a diverse presentation of Tasmanian issues. TT creates and supports independent media content utilising the best of modern technologies and tried-and-true practices of public-interest journalism.
Support us in expanding our coverage and developing new content by and for Tasmanians.
New initiatives on the way include … what our contributors and readers suggest! Please get in touch with your suggestions.
