Health Minister Bridget Archer MHA announced the government’s $2 million transitional funding package, claiming credit for “saving” the clinic and criticising federal inaction. Opposition Shadow Minister Sarah Lovell acknowledged the funding but accused the government of manufacturing a crisis through its own funding cuts, arguing the minister initially claimed nothing could be done before community pressure forced action.
The clinic appointed three new directors on 21 October 2025—Tim Booker as chair, alongside Dr Robert Walters and Ben Uprichard—who now face a six-month period to prove the facility can achieve long-term viability. The dispute highlights tensions over Tasmania’s strained mental health system and responsibility for the near-collapse of the 27-bed facility.
Media release – Bridget Archer MHA, Minister for Health, Mental Health and Wellbeing, 23 October 2025
Tasmanian Government saves The Hobart Clinic
Minister for Health, Mental Health and Wellbeing, Bridget Archer, has welcomed The Hobart Clinic Board’s decision to accept the Tasmanian Government’s $2 million offer of transitional funding.
Minister Archer said with the funding deed now signed, the Clinic can look to the future as it works towards long-term sustainability.
“I am pleased The Hobart Clinic has accepted this funding, which provides stability for patients and staff over the next six months while the Clinic undertakes the necessary work to strengthen its business model,” Archer said.
“We acted swiftly to keep The Hobart Clinic’s doors open within days of receiving a proposal, and this means the Tasmanian Government has now invested nearly $9 million into the Clinic since 2021. By comparison, the Federal Government has contributed $0.
“With the Clinic’s immediate future now locked in thanks to our investment, we call on the Federal Assistant Minister for Health, Rebecca White, to work with the Clinic on ways to ensure its long-term viability moving forward.
“Our Government will continue discussions with other private providers to strengthen options available to Tasmanians, as we also progress our plans to future-proof the public system.”
Media release – Sarah Lovell MLC, Shadow Minister for Health, Mental Health and Wellbeing & Ageing, 23 October 2025
Hobart Clinic confirmation welcome
Labor welcomes confirmation a funding deed has been signed for the Hobart Clinic to continue operating.
When the clinic’s closure was announced last month, the State Government said nothing could be done and that Tasmania’s public system could handle the extra load.
Neither of those points were true.
It is only due to the determination of the new board, workforce, clinicians and patients of the facility that a solution could be reached and they deserve enormous credit.
Withdrawing funding, then watching the service fall over and saying nothing could be done, before reinstating funding after weeks of community pressure does not equate to “saving” a service. Minister Archer’s shameless characterisation shows exactly why this Liberal Government, propped up by the Greens, cannot be trusted.
The clinic’s potential closure brought the vulnerability of Tasmania’s mental healthcare system into sharp focus.
The Liberal-Green Government needs to learn its lesson and lift its game in making sure mental health care is accessible to all Tasmanians who need it.
Media release – Sarah Lovell MLC, Shadow Minister for Health, Mental Health and Wellbeing & Ageing, 21 October 2025
Hobart Clinic announcement welcome
Labor welcomes today’s statement from the Hobart Clinic Association that three new board members have been appointed and are working towards the reopening of the critical mental health facility.
The clinic’s potential closure highlighted the vulnerability of Tasmania’s mental healthcare system and demonstrated why this Government can’t be trusted.
Tasmania’s system is close to breaking point and could not withstand the removal of 27 private beds. Despite this, Health Minister Bridget Archer blindly told Tasmanians it could.
Given the Minister’s reluctance to lead a solution on this matter, it is a relief that one could be reached and the workforce, clinicians and patients of the facility deserve enormous credit for not giving up.
It is vital that the Government learns its lesson and lifts its game in making sure all Tasmanians who need to can access mental healthcare.
The Minister can’t afford to take a back seat on this issue, she needs to play a role in the work that must place over the next six months to develop a sustainable mental health system.
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