Despite a proposed $2 million lifeline to keep southern Tasmania’s only private mental health hospital open, the future of The Hobart Clinic remains uncertain. The clinic’s shareholders are set to meet on Monday, a gathering that could determine the fate of the facility.
The Hobart Clinic, located in Rokeby, is discharging its last three inpatients today, adhering to a plan to close the 27-bed facility by the week’s end. This comes after State Health Minister Bridget Archer offered $2 million in transitional funding on Tuesday, aimed at keeping the clinic operational for another six months. This period is intended to allow a clinician-led group to devise a sustainable business model.
Funding Shortfall 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, originally sought $2.4 million. This included $2 million for operating costs and $400,000 for a feasibility study. However, proponents of the bid, contacted by the ABC, expressed concerns about the viability of the plan without the full funding package.
“That’s why we’re asking for federal assistance to go along with the state government’s assistance,” said HACSU state secretary Robbie Moore, highlighting the $400,000 shortfall.
Minister Archer’s office confirmed there would be no increase in state funding. Archer has engaged in discussions with federal Health Minister Mark Butler to seek additional federal support for private hospitals in Tasmania, emphasizing the need for federal involvement.
Conditions and Challenges
The state government’s funding offer comes with conditions, including compliance with licensing requirements and safety standards. The Hobart Clinic has yet to agree to these terms. Additionally, the clinic’s three members, who are effectively its shareholders, have expressed concerns about safeguarding staff entitlements.
An outline of the rescue bid, reviewed by the ABC, attributed the clinic’s current predicament to governance and management issues. The clinic has faced management turmoil, with former chief executive Kath Skinner departing abruptly in early September, just weeks before the closure announcement.
In May, nursing staff alleged a toxic work environment, unsafe staffing, inadequate psychiatric oversight, and non-compliance with health and safety standards.
The Regulatory and Licensing Unit conducted an audit in June, which the clinic failed, adding to its challenges. The outgoing board, led by chairperson Graeme Lynch, has been recruiting new directors to oversee the clinic’s potential closure.
The Road Ahead
As the shareholders prepare to meet on Monday, they face a critical decision: whether to appoint new directors from the rescue bid or allow the clinic’s closure to proceed. The outcome of this meeting will likely shape the future of mental health services in southern Tasmania.
Minister Archer has called on the federal government to assist with the clinic’s rescue bid, suggesting potential support for feasibility studies or capital upgrades. Assistant Minister for Health Rebecca White indicated that the $2 million could be used for the feasibility study if the clinic’s board decides to allocate funds in that manner.
The implications of this decision extend beyond the clinic itself, affecting the availability of private mental health services in the region. As the stakeholders deliberate, the community awaits a resolution that could redefine the landscape of mental health care in Tasmania.
