Instead, responsibility for funding the centre was transferred to the Tasmanian Government in 2017, which contributed $20 million over four years.

Ms Archer said it was the coalition that had ensured the ongoing future of the centre.

"The centre is now in safe hands with no question as to its future," she said.

"So MediScare is back from a policy-free Labor Party and a federal member who has achieved nothing for Bass in his three-year term.

"It's pathetic for Labor to now seek to cause alarm in the community when clearly, they have no idea what's been going on for the past two years."

Mr Hart admitted he was "not aware" of the specific arrangement for the centre but still had concerns about perceived shortfalls in health funding that had put "doctors, nurses and Allied heath practitioners" under pressure.

Australian Medical Association spokesperson Frank Nicklason said a failure to address the growing demand for home care packages was flowing into the rest of the health system.

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"There's a huge waiting list of people who are waiting for those packages, something like 130,000 people are approved as waiting," he said.

"Those are people who are typically older, frailer, they have social problems in addition to very complex medical problems, and they are high risk people for requiring hospital admissions.

"And when they come to our emergency departments, whether it's here in Launceston or in Hobart, they typically stay a long time in the emergency department because we have difficulty with bed access, and so they can frequently deteriorate whilst waiting for care in hospital.

"It is far better, far more efficient, far better for the patients, far better for those people, if they can have their heathcare and social needs met in the community and not require these sorts of admissions."

With Launceston having low levels of bulk billing, the end of the Medicare rebate freeze was welcomed by the AMA.

Dr Nicklason said if patients faced lower up-front costs, they would be more likely to visit the GP instead of the Emergency Department.

"With the freeze, there's been a lot of difficulties in general practice, GPs have had to meet the rising cost of expenses without getting that support from the Medicare Benefits Schedule," he said.

"That has meant that the bulk billing rates have been a problem, and some people understandably are not going to see their doctor when they really should and that creates problems for the hospitals where we see presentations with illnesses that are at a more advanced stage than they should be."

Mr Hart said it was unlikely that GPs would immediately start bulk billing again with Northern Tasmania having some of the country's highest cost gaps.