CONVERTING the Mersey Hospital into a day centre for elective surgeries is not a fait accompli, according to Australian Medical Association state president Tim Greenaway.
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The proposal is one of a range of options being considered to overhaul the state's health system.
Dr Greenaway said converting the Mersey Hospital would be a decision for the government, but said it was time Tasmania seriously considered the future of healthcare in the state.
"It is an option, and it does need to be looked at, along with a more broad analysis of healthcare delivery in Tasmania," he said.
"We need to look very seriously at the way that we are delivering health, the return that the taxpayer is getting on their dollar, and what quality or lack of quality is delivered by the health system.
"We can't continue as a state of 500,000 people to offer everything everywhere."
Dr Greenaway said at this stage nothing was off the table in terms of reform proposals, and that a conversion of the Mersey Hospital was not being more or less seriously considered than any other option.
Australian Nursing and Midwifery Federation state secretary Neroli Ellis said her organisation was still in the process of consulting with members and preparing a submission for the Rebuilding Tasmania's Health System Issues Paper, which will close on February 20.
Mrs Ellis said any reform needed to balance the health system, and ensure its sustainability.
Health Minister Michael Ferguson said the government wanted to have a "sensible and rational discussion" about how to ensure the best possible health outcomes for Tasmanians.
"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 are not going to get into the rule-in, rule-out game or it will make the whole conversation pointless."