A Federal Government funding deal to continue the operation of the Mersey Hospital in Tasmania’s north-west has been officially approved.
The funding of almost $150 million will keep the hospital in Latrobe open for the next two years.
The Federal Health Minister Susan Ley has now signed off on the deal.
The Federal and State Governments came to an in-principle agreement in May but it took another three months to be ratified.
Doubt was raised over the certainty of the funding in recent weeks when it was included on a Federal Government cabinet minute.
It is the only fully federally-funded hospital in Australia.
Ms Ley said the signing of the deal meant people in the north west would continue to receive high-quality care at the hospital.
The Federal Government will provide $148.5 million to the Tasmanian Government for the continued management and operation of the hospital.
The increased investment from the Federal Government demonstrates the level of services which will be delivered from the Mersey under the One Health System reforms.
Health Minister Michael Ferguson
“This two-year agreement gives certainty to the Mersey Hospital as the Tasmanian Government works through the ‘One State, One Health System, Better Outcomes’ reform process and is great news for the local north-western Tasmanian community,” she said.
Tasmanian Health Minister Michael Ferguson said the hospital was a vital part of health reforms announced earlier this year.
He said under the reforms, the Mersey would become a statewide centre for day and overnight surgeries but would keep its 24-hour accident and emergency department.
“The ratification of this agreement is a clear demonstration of both governments’ commitment to the Mersey, which under the One Health System reforms will become an asset for the whole state, in addition to providing local hospital services for the Mersey region,” he said.
Mr Ferguson said it was above the level of the last agreement that expired earlier this year.
“The increased investment from the Federal Government demonstrates the level of services which will be delivered from the Mersey under the One Health System reforms,” he said.
“This includes a 24/7 emergency department, a new range of specialist outpatient services, and Tasmania’s only dedicated elective surgery centre.”