Mersey Hospital faces major shake-up under Tasmanian Government health reform plan

The Mersey Hospital in Tasmania's north is in for another major shake-up with the State Government considering converting it into a day centre for elective surgeries.

But Health Minister Michael Ferguson has ruled out closing the hospital in Latrobe, near Devonport, as part of the latest overhaul of the state health system.

In the past decade the Mersey has been mooted for closure and changed ownership and operators several times.

Tim Greenaway from the Australian Medical Association said rationalising services would make sense.

"We cannot continue to attempt to provide every service in every area of Tasmania," he said.

"We're a state of only 500,000; a dispersed population."

He said it could help to take some strain off the system.

"Theoretically, it might help the considerable waiting lists around the state for these elective procedures."

The plan was being considered as part of the State Government's green paper on health.

The change would be likely to be implemented when the three health organisations merge in July as part of the Government's attempt to save $21 million.

Doctors and nurses support the change

Nursing and Midwifery Federation spokeswoman Neroli Ellis said she was supportive of the change.

She said a trial of endoscopy procedures recently done at the Mersey had proved successful.

"A number of residents from across Tasmania travelled to the Mersey to have the procedures done," she said.

"Their only other option was to wait months, if not years, on a waiting list, so it did show people would be prepared to travel."

But Devonport Mayor Steve Martin said any changes needed to be evidence based.

"Mersey District has a catchment areas of 65,000 people and we need to have the services that compare to that population," he said.

The Government would not be the first to try rationalise the Mersey.

Former Labor health minister Lara Giddings tried to implement a similar proposal seven years ago when she closed the Mersey's intensive care unit.

It sparked public outcry and a federal takeover of the hospital by then prime minister John Howard.

Before becoming Mayor in 2011, Mr Martin led the Support the Mersey campaign.

"If we're now to lose the HDU [High Dependency Unit] and it's taken out of the area or the region, which I don't know, we have to make sure there is fast patient transport transferral," he said.

The green paper is still open for public comment and Mr Ferguson said the Government had made no decisions and was listening to the community.

"We are aiming for essential and emergency services delivered at high quality in each region, and we can rule out closing hospitals," he said.

"Beyond that we're not going to get into the rule-in, rule-out game or it will make the whole conversation pointless."