Despite a proposed $2 million lifeline to keep southern Tasmania’s only private mental health hospital operational, the future of The Hobart Clinic remains uncertain. As shareholders prepare to meet on Monday, last-minute concerns threaten to derail the rescue effort.
The clinic, located in Rokeby, is discharging its final three inpatients today, adhering to a plan to close the 27-bed facility by the week’s end. This development follows a one-off “transitional” funding offer from State Health Minister Bridget Archer, intended to keep the clinic open for another six months. This period would allow proponents of a clinician-led rescue bid to devise a sustainable business model without further public funding.
Funding Shortfalls and Stakeholder Concerns
The rescue bid, spearheaded by former clinical director Hannah Lake and supported by the Health and Community Services Union (HACSU) and the Australian Medical Association, initially sought $2.4 million. This included $2 million for operating costs over six months and $400,000 for a feasibility study to develop a new business model.
However, proponents expressed concerns that the rescue might not be feasible without the full funding package. HACSU state secretary Robbie Moore emphasized the shortfall, stating, “That’s why we’re asking for federal assistance to go along with the state government’s assistance.”
“The state government funding was $400,000 short and all of the $2 million was needed to cover operating costs because the clinic was now effectively empty.”
Minister Archer’s office confirmed no increase in state funding would be forthcoming. Meanwhile, she has called on the federal government to support the clinic’s rescue bid, having already discussed the matter with federal Health Minister Mark Butler.
Government and Federal Involvement
Minister Archer urged federal assistance, suggesting it could support the feasibility work necessary to ensure the clinic’s sustainability or fund capital upgrades at the Rokeby site or other venues. Assistant Minister for Health Rebecca White indicated the $2 million could be used for the feasibility study if the clinic’s board decides.
Ms. White encouraged continued collaboration with the state government, although she had not yet received any direct representations from Dr. Lake’s group.
Conditions and Compliance Challenges
The state government’s offer includes several conditions, and The Hobart Clinic has yet to agree to these terms. These conditions require the clinic to maintain licensing requirements and comply with safety and quality standards.
Concerns among the clinic’s three members, effectively shareholders of the non-profit company, focus on ensuring current and future staff entitlements are protected. An outline of the proposed rescue bid attributes the clinic’s challenges to governance and management issues.
Historical Context and Management Turmoil
The management of The Hobart Clinic has been in turmoil for months. Former chief executive Kath Skinner’s abrupt departure in early September preceded the board’s surprise closure announcement. The acting chief executive, Stephen Ayre, previously served as the chief executive of Launceston General Hospital and was a prominent witness at the child abuse commission of inquiry hearings in 2023.
In May, nursing staff reported a toxic work environment, unsafe staffing levels, inadequate psychiatric oversight, and non-compliance with health and safety standards. An audit by the Regulatory and Licensing Unit of the health department in June found the clinic lacking.
Management of The Hobart Clinic has been in crisis for months, with the former chief executive Kath Skinner leaving abruptly in early September.
Looking Ahead: Monday’s Critical Decision
The outgoing board, led by chairperson Graeme Lynch, has been recruiting new directors to potentially wind up the clinic. On Monday, the members face a pivotal decision: whether to appoint a new team of directors from the rescue bid or not.
This decision will significantly impact the future of mental health services in southern Tasmania, with stakeholders and the community eagerly awaiting the outcome. The implications of the meeting could extend beyond the clinic, potentially influencing broader discussions on healthcare funding and private hospital sustainability in the region.
