The Hobart Clinic is back in operation after a $2 million grant from the state government secured its future and prevented the private mental health facility from closing.
The 27-bed center faced closure in October when the prior administration deemed its operating model unsustainable. A newly formed board stepped in, and the clinic began admitting a small number of patients during a soft reopening last month.
Board chair Tim Booker emphasized that the immediate priority was establishing safe clinical governance before patients could be fully welcomed back. “The board now faces the task of stabilising the current business and then guiding a transition to a model that fits today’s environment,” he explained. “Running a small private hospital comes with unique challenges, but that doesn’t mean there aren’t workable solutions to secure the future—some of which are already well advanced.”
Booker stressed that delivering safe, consistent patient care is non-negotiable, alongside creating a sustainable framework for staff and infrastructure.
Board member Dr Rob Walters highlighted the clinic’s role in filling a vital gap within Tasmania’s mental health system. He noted that patients will receive the care they need and then be reintegrated into the community, rather than cycling through acute care facilities. He also pointed out that General Practitioners now have a local referral option.
Dr Walters paid tribute to the nursing staff, calling them the backbone of the service amid the uncertainty. “Many of the staff have remained loyal to The Hobart Clinic, and that loyalty deserves recognition,” he said.
The Australian Nursing and Midwifery Federation joined the reopening celebrations, having campaigned alongside HACSU and the AMA to save the facility. ANMF Tasmanian branch secretary Emily Shepherd described the clinic as a lifeline for Tasmanians who need longer inpatient stays and support for ongoing mental health challenges, expressing relief that those seeking help can continue to access services at the Hobart Clinic. She also affirmed that the union will support staff through the transition and is keen to hear how the new board plans to future-proof the clinic.
The $2 million grant is designated to cover six months of operations.
