The future of the only federally funded hospital in Australia remains unclear after Prime Minister Tony Abbott failed to provide new details during a whistlestop visit to Tasmania.
As the Howard government’s health minister in 2007, Mr Abbott took over funding for the hospital from the Tasmanian Government.
It followed an announcement that the hospital would be downgraded to a day procedure centre, with only a limited overnight emergency facility.
The current funding deal lapses later this year, and the Hobart-based Independent MP for Denison Andrew Wilkie has urged Mr Abbott to untie Commonwealth funding from the hospital.
“I think this is a wonderful opportunity at the moment,” Mr Wilkie said.
“The Federal Government wants to get out of running a hospital, and the State Government needs that $73 million a year elsewhere – it’s an opportunity for both parties.”
Mr Abbott appeared to dismiss the idea at a media conference in Evandale, in northern Tasmania.
“We’re continuing to talk to the Tasmanian Government about that,” Mr Abbott told reporters.
“I think it’s important that we’ve got good health services right around the state, and I think that that means the continuation of good, strong health services in and around Devonport.”
Closing northern hospital ‘a no-brainer’
Mr Wilkie suggested Mr Abbott’s apparent reluctance to untie the Commonwealth funding showed the funding for the Mersey was based on political – not policy – considerations.
He continued to advocate for the closure of one of northern Tasmania’s three public hospitals: the Launceston General Hospital, the Mersey Hospital at Latrobe, or the North-West Regional Hospital at Burnie.
“It makes perfect sense to close one of the three northern hospitals, but regrettably there is political paralysis in this state,” Mr Wilkie said.
“In the north-west there are five state seats at stake, and there’s at least one federal seat at stake and even more if you include senators.”
Mr Wilkie has submitted his hospital closure suggestion to the State Government’s review of the health system, the results of which are expected to be made public in late March.
State Health Minister Michael Ferguson has previously said closing a northern hospital was off the table, although it is understood limiting services to elective surgery at the Mersey Hospital is a likely outcome of the white paper.