Calvary Health Care has decided not to proceed with the construction of a new co-hospital in Launceston, a decision that has been labelled as ‘concerning’ by the Australian Medical Association of Tasmania (AMA).
The hospital was originally planned to be located within the premises of the Launceston General Hospital but was abandoned by Calvary due to budget and cost escalations.
AMA President Dr John Saul said having a modern private hospital in the city was “essential to support a robust public health system” and called on the state and federal governments to explore options to “ensure this project comes to fruition”.
“It provides alternative patient care options and reduces the demand on the state and federal-funded public hospital system, where patients can be treated privately,” he said.
“We are particularly concerned about what this redevelopment will mean for Launceston, noting that the existing facilities in Launceston must be near or at the end of serviceable life.”
Health Minister Guy Barnett assured that, despite Calvary’s decision, the state government would proceed with the demolition of existing buildings at the Launceston General Hospital to create space for the private hospital.
“I want to make it abundantly clear our government remains committed to partnering with providers to see this project through,” he said.
Labor’s Shadow Health Minister Anita Dow reminded Premier Jeremy Rockliff how he “said the new private hospital was expected to be completed in 2026” and called the cancelled project another “broken promise”.
“The government says it remains committed to a Launceston co-located hospital and is even demolishing buildings to make space. The problem is they don’t have a provider to work with them,” she said.
“The co-located hospital is massive project for Launceston, and will be critical in reducing pressure on the Launceston General Hospital, which has some of the worst bed-block in the nation.”
