The Commonwealth's $148-million funding deal for a Tasmanian hospital has exceeded the state's expectations, following months of negotiations. Federal health minister Sussan Ley on Thursday announced Canberra would stump up $148.5 million over two years for the Mersey Community Hospital at Latrobe in the state's north.
It gives certainty to the hospital's continued operation while Tasmania reforms its health system, she said.
Asked for details of the agreement, Tasmanian treasurer Peter Gutwein said it was a better deal than the previous 12-month arrangement, which expires at the end of June.
"It's providing us with more funds than what we had originally expected," he said.
"And what we will do over the next two years is argue very strongly that it's a Commonwealth responsibility."
State Labor leader Bryan Green welcomed the funding, but said it left uncertainty for staff and patients beyond the two years.
"The funding agreement provides a short-term political fix for the Abbott government," he said.
"While ever the future of the Mersey remains firmly in the political cycle, there will be doubts about its long-term future."
Tasmania Health Minister Michael Ferguson said the funding recognised the important services provided by the hospital, but added "the role of the Mersey Hospital might change".
The federal government took over funding for the Mersey in 2007 when the state's Labor government of the day signalled the hospital would be downgraded.
Since then, it has been federally funded and state managed.
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