Department secretary Kathrine Morgan-Wicks on Monday said Andrew Finch would oversee and manage capital projects across the health system which included the commissioning of Royal Hobart Hospital's new K Block which was soon to be completed.

She said Mr Finch had extensive experience in the state's public service which included several senior roles within different agencies.

He had previously worked with the Treasury Department and Education Department and had more recently served as the Tasmanian Treasurer's chief of staff, Ms Morgan-Wicks said.

Mr Finch's contract for the new position runs for five years and he will oversee $1 billion in capital spending.

The position of Deputy Secretary - Capital Program was advertised nationally two months ago with a salary package between $225,890 and $259,771.

Labor leader Rebecca White had previously criticised the creation of the new position while the department underwent budget cuts to meet a government-imposed savings strategy which included cuts to elective surgery.

She said the position would earn the recruit $1.5 million over the lifetime of the contract which equated to 200 elective surgery procedures.

Health Minister Sarah Courtney defended the decision to create the role and said it was required due to the government's substantial investment in capital works for the state's health system.