The state government said the study would determine the need for a dedicated hospice service in the North, look at potential hospice models, examine unmet and future demand for the service, and investigate current ability to meet end-of-care demand.

The study announcement was timed with World Hospice and Palliative Care Day, with an end-of-life care event held on Saturday attracting up to 300 people.

Friends of the Northern Hospice chairwoman Barb Baker said the group was thrilled that the study was almost underway and hoped it would eventuate in the return of a hospice service.

She said sometimes, people did not want to die at home.

"In 2004 the last palliative report for Tasmania found that only 50 per cent of the palliative care beds needed were actually available and only 52 per cent of people requiring end-of-life services were actually receiving them," Mrs Baker said.

"We think that in the 11 years since the report that need would have just escalated, with our ageing population and our chronic disease, which we have a high incidence of."

Mrs Baker said patrons at the event on Saturday heard from a person in regional Victoria who had successfully pushed for a hospice, who spoke about how the community must get behind any proposal.

"A hospice provides a home life environment where people can come and go and families and pets are welcome at any hour of the day. It has to be better than the emergency department or four public beds in an acute hospital," Mrs Baker said.