Tasmania’s maternity services secured with extra federal funding

The future of Tasmania’s maternity services have been locked in after the Health Minister announced the federal government would chip in. Here’s how it will help.

Federal minister Julie Collins, Federal Health Minister Mark Butler and Tasmania Health Minister Jacquie Petrusma

A federal cash splash has secured the future of Tasmania’s maternity services following Healthscope’s announcement it would axe the ward at Hobart Private Hospital in August.

The federal government will hand over $6m in funding to the Tasmanian government to support the expected increase in demand for maternity services across the public and private system.

Federal health minister Mark Butler made the announcement on Wednesday morning flanked by his state counterpart Jacquie Petrusma and federal Labor member for Franklin Julie Collins.

“I’m really pleased to announce that the Commonwealth will be providing Tasmania with an additional $6m to assist the Tasmanian Government in expanding their Birthing Unit capacity here in Hobart,” he said.

“Also, if it is the view that this would be in the interests of Tasmanians, also providing additional funds to Calvary — which I see on the front page of the Mercury this morning to their credit has indicated a willingness to expand their birthing unit capacity, to pick up the slack really left by Healthscope closing maternity services here in Hobart.”

Hobart Private Hospital will axe maternity services from August.

The funding is earmarked for infrastructure and equipment upgrades. The state government will also establish a new mother and baby unit at the St Johns precinct in New Town.

Ms Petrusma welcomed the announcement and said it would allow the Royal to go from 29 to 34 beds and Calvary to ramp up to more than fill the gap left by the Hobart Private Hospital.

“I’m really grateful that Minister Butler has been very positive about working with us to ensure that the mothers and babies and dads of Tasmania have the services that they need,” she said.

“I feel that between the minister and I, we are now delivering triplets.

“We are delivering better services and better equipment for the Royal Hobart Hospital, we are delivering better services and better equipment at Calvary and also we are giving the mums of Tasmania a new mother and baby unit that is going to be located in a far better, holistic setting.”

Sally Jarvis midwifery unit manager, Martin Bowles Calvary Health Care national chief executive, Leah Magliano director of clinical services. Calvary Lenah Valley Hospital boss says they will fill help fill the gap after Hobart Private Hospital stops maternity services. Picture: Nikki Davis-Jones

She said she was glad to see funding going to Calvary as long-term local not-for-profit operators.

“Healthscope is a for-profit organisation, it’s a private equity company owned by North Americans,” she said.

“So at both the state and federal level, there was no intention of us propping up a for profit organisation that is based in North America.”

Mr Butler said he would be looking to find further ways to improve the health offering in both public and private sectors, including bolstering the workforce.

“I’ve also put a number of ideas that I saw canvassed in the Mercury this morning to a group of CEOs that we convened several months ago: private hospital, private health insurer CEOs, the AMA obviously and also consumer groups to nut out some ideas to make elements of the private sector more sustainable than they currently are,” he said.

And he said private health providers “have to do better”.

“Many of these companies are making very big profits, whether they’re insurers or private hospital operators, and they need to remember, they’re making those profits through the hard-earned cash of families who pay their private health insurance policies.

“Here in Hobart now, they have been let down by the private system.”