Will Hodgman

Premier of Tasmania



29 January 2019

Michael Ferguson, Minister for Health

Hobart Private Hospital open tender process

The Department of Health will proceed to an open competitive tender process to select the future operator of the Hobart Private Hospital, with the 20-year contract expiring in December 2019.

The Government is committed to maximising the availability of private health services in Tasmania and to ensure the sector is taking as much pressure off the public system as possible.

Our priority is achieving more health services, delivered more often, to allow more patients to get treatment, collaborating with and supporting the public system.

The Hobart Private Hospital site is a valuable health asset for our state and it is important that the rigour of a competitive process is undertaken to deliver the best possible result for the healthcare of Tasmanians.

We’ve been talking to Healthscope for a long period of time about their intentions. With the lease expiring at the end of this year, the best way forward is to allow all potential operators to participate in an open and competitive process. It is imperative that we secure the best possible outcome for Tasmanians, and to do that we need to allow the necessary time to run a proper, robust tender process.

It is our expectation that maximising the level of services at the private hospital will require maximising the staff at the facility.

The Government’s decision is not a reflection on the current operator, which has recently indicated its willingness to actively participate in a tender process. The Government believes there will be strong interest in the hospital across the Australian private hospital industry.

The Department of Health is in the process of contacting the AMA and health unions, advising them of the announcement and offering briefings.

An extensive arms-length procurement process will be opened by the Department on January 31. This will include the appointment of probity advisers. It is expected the successful operator will be announced in the middle of this year.

We are committed to working with the successful operator to develop contractual arrangements that best serve the community, staff and clinicians.



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