A $1 million ''rescue taskforce'' will be established to review the troubled Royal Hobart Hospital redevelopment.
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In a ministerial statement to Parliament a short time ago, Health Minister Michael Ferguson said the government was committed to the redevelopment but not in its current form.
"This project is riddled with risk, and is over-budget and unaffordable into the future," Mr Ferguson told Parliament.
The taskforce will be made up of three independent experts who have not yet been named and will have six months to provide advice to government on construction methodology and management of the project.
The project has been on hold since last month when the government received advice that it was on track to blow its budget by up to $70 million.