The inquiry will look at current and future demand for health services, the adequacy of state and federal funding, and the factors that contribute to adverse patient outcomes.

In his submission to the inquiry, Health Minister Michael Ferguson said the government in its term had increased frontline hospital staffing by more than 300 full-time equivalent staff.

He said Tasmania had 2.54 beds per 1000 people, which was a greater ratio than Queensland, Victoria, Western Australia and South Australia.

He said annual expenditure on health services had increased to $1.7 billion in 2016-17, adding about $7 billion had been committed over the forward estimates in this year's budget.

But the Health and Community Services Union in its submission said that there had been funding cuts, staff reductions, and bed losses over the past three years.

It said low staff morale and increasing workloads might have a long-term impact on the health system.

"In our view, once the peak season is over, the likelihood of staff accessing increased personal leave is real, as staff report to us that they are drained and barely functioning in a professional sense," the union said.

Australian Nursing and Midwifery Federation state secretary Neroli Ellis said there had been a gradual decline in investment of nursing workforce development and new graduate intake was inadequate despite increases in university graduates.

“The sector should be encouraging new nurses to take up opportunities because retirement of experienced nurses, in large numbers, is soon to begin,” she said.

The Australian Medical Association has recommended that the government reopen 10 acute psychiatric beds at the Royal Hobart Hospital and 12 more in another block. It said that the government should look at ways to improve psychiatric services at the Launceston General Hospital and North-West Regional Hospital.