Tasmania’s largest private mental health facility has reopened after a 17-day closure, supported by a six-month government funding package aimed at stabilizing operations while a long-term plan is developed. The Hobart Clinic, a 27-bed hospital in Rokeby, began admitting patients again on Monday.
Tim Booker, the clinic’s newly appointed chair, said reopening was essential to sustain the workforce of 50–70 employees. “We have to get the doors open because paying staff when there’s no revenue becomes very difficult to sustain,” he said.
The Tasmanian government approved $2 million in transitional funding in October, allowing the clinic to resume services while an independent feasibility study examines whether its business model can be financially viable. Mental Health Minister Bridget Archer backed the rescue effort.
Booker said early assessments suggest a sustainable model may be achievable, though not guaranteed. He is working with clinical director Dr. Hannah Lake to ensure the facility meets safety and care standards during the transition period.
The reopening follows a period of instability for the clinic. The previous board announced in September that it would close due to a projected $3 million deficit for the 2025–26 financial year, linked to low private insurance reimbursements and rising out-of-pocket costs. The clinic had failed a health-department audit, which led to the dismissal of former chief executive Kath Skinner.
Regulatory inspectors from the Department of Health visited the facility again last week. Booker said the Regulatory and Licensing Unit found substantial improvement and supported the readmission of patients. “It was a very different outcome than the last time they were there,” he said.
While the clinic has no critical compliance issues outstanding, Booker acknowledged ongoing “continuous improvement” work. A small number of staff resigned during the shutdown, but most chose to withdraw their redundancy requests.
Dr. Robert Walters, a Hobart-based GP and new board member, said the clinic provides essential early-intervention psychiatric care in a state with some of the highest rates of long-term mental health conditions in Australia.
“The trick to good mental health care is getting people before their situation becomes acute,” he said. The facility, he added, offers physicians a critical alternative to admitting patients into an already overburdened acute system.
Walters praised the nursing workforce and said the clinic had been “turned around” during the closure period. “Care of patients with mental health issues does not just depend on psychiatrists,” he said. “A strong nursing staff is vital, and we have one of the best in the country.”
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