Tasmania’s struggling private mental health facility, The Hobart Clinic, has been saved from closure after officially accepting $2 million in transitional funding from the state government.
Health Minister Bridget Archer today confirmed the clinic’s board has accepted the funding offer, providing a six-month reprieve while it develops a sustainable business model.
“I am pleased The Hobart Clinic has accepted this funding, which provides stability for patients and staff over the next six months while the Clinic undertakes the necessary work to strengthen its business model,” Archer said.
The funding deed has now been signed, with the government saying it is the last financial intervention for the facility.

A new three-member board, chaired by Apex Advisory Managing Director Tim Booker alongside Dr Robert Walters and Ben Uprichard, has been appointed to oversee the clinic’s transformation.
Booker said the immediate priority is ensuring the facility meets safety and compliance standards before reopening to patients.

“Our focus for the next six months is to develop a sustainable clinical model, a sustainable financial model and a sustainable infrastructure plan to allow the clinic to continue serving the community,” he said.
The clinic is not currently admitting patients while compliance issues are addressed.
Archer said the state government has now invested nearly $9 million into the clinic since 2021.
“With the Clinic’s immediate future now locked in thanks to our investment, we call on the Federal Assistant Minister for Health, Rebecca White, to work with the Clinic on ways to ensure its long-term viability moving forward,” Archer said.

The rescue package follows mounting pressure from unions and patients concerned about the potential closure of the only facility of its kind in southern Tasmania.
Booker thanked staff who had endured “a time of great uncertainty” and stakeholders whose support had been “vital to secure a way forward for this important facility.”