The state government has offered The Hobart Clinic $2 million to keep its doors open for another six months – but says it’s the facility’s last chance to prove it can survive on its own.
Health Minister Bridget Archer wrote to clinic chair Graeme Lynch today, offering the one-off grant through the Department of State Growth.
The money comes with strict conditions. The clinic must show it can operate sustainably without any further government support and meet all safety and quality standards.
“This investment will allow The Hobart Clinic to keep the doors open for six months, giving them time to work through their operating model and ascertain if the business can be viable into the future,” Archer said.
“After six months, The Hobart Clinic must be able to demonstrate they can operate without government assistance as no further government funding will be available.”
The facility had previously told the government it would close regardless of public funding, saying its operating model was no longer sustainable.
Despite receiving almost $7 million in government support in recent years, the clinic has struggled to achieve financial stability.
Under the new deal, the clinic must provide monthly financial updates and keep enough reserves to cover staff entitlements.
If it shuts down within the six-month period, any unspent funds must be returned within seven days.
Archer said the clinic also needed to assure authorities that strong corporate governance and clinical oversight arrangements were in place.
“… The board and governance arrangements of The Hobart Clinic are a matter for The Hobart Clinic, as is any decision regarding the clinic’s ability to stay open,” she wrote in the letter.
The minister said the government would continue working with other private mental health providers to make sure Tasmanians’ needs are met in the medium term.
Public mental health services are also being expanded, with new hubs planned for the Huon Valley and mental health precincts in the north and north-west.
The Hobart Clinic is due to close at the end of this week.
