Tasmanian budget 2020-21: Health spending is up, but will it be enough?

The government exceeded its operational health budget for 2019-20 by almost $220 million - spending $2.18 billion, compared to the budgeted $1.96 billion.

Now, in 2020-21 the budget has $2.46 billion for health - an increase of $276 million.

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Over four years, the budget lays out $9.8 billion for health in what the government has described as unprecedented resourcing.

It represents $1.7 billion more than last year's budget, including a 21 per cent increase in operational expenditure and a $391 million capital works program.

In his budget speech, Premier and Treasurer Peter Gutwein laid bare the impacts of COVID-19.

"It is both a health crisis and an economic one as well," he said. "We must deal with both."

There's $600 million of additional funding for the Tasmania Health Service, over four years.

Budget papers show $140 million of this has been budgeted for 2020-21, with $150 million each year over forward estimates.

The state government will invest $36 million over two years, starting in 2020-21, to help meet rising demands on hospitals, including support to open more beds.

This will be met with federal funding of $7.4 million in 2020-21 and $6.8 million in 2021-22.

There's $24.4 million over the next two years to upgrade and renovate regional health and ambulance facilities.

This includes $10 million over two years, on top of $15 million in existing commitments for capital improvements.

As part of the government's capital investment program, improvements will be made to the Launceston General Hospital emergency department.

This includes the ambulance airlock - where patients are brought into the hospital.

The scope of the project - something unions have been requesting for years to help improve access block - is estimated to cost about $2 million.

Health Minister Sarah Courtney said hospital and ambulance staff would be consulted in the development of the design.

The government's Social and Economic Support package includes $150 million for the state's health preparedness and response, with $4 million for mental health support packages.

Funding of $145 million in 2020-21 has been allocated to a central COVID-19 provision in finance general.

A further $4.4 million has been invested for an ongoing centralised COVID-19 coordination centre for the next 12 months, in partnership with the Commonwealth Government.

The budget includes $1.2 million to continue mental health support initiatives during the COVID-19 response and recovery period.

This includes $120,000 for Lifeline, $45,000 for the Alcohol, Tobacco and Other Drugs Council and $400,000 for GoodSports.

As part of COVID-19 Response and Recovery measures there is also $2.1 million for community organisations to provide mental health support.

There's also the already announced $4 million for the much-needed reform to the Child and Adolescent Mental Health Service, over two years.

The 2020-21 also provides $4.1 million over two years to address priority areas in the Mental Health Reform Agenda.

Mental Health Council of Tasmania chief executive Connie Digolis said the government had acknowledged the need for an integrated system that supported wellbeing.

However, she said there was still a need to invest in services and programs that help prevent people from people from becoming acutely unwell.

"We must ensure there are programs available in the community that focus on prevention and early intervention and provide support to people when they need it," she said.

"To that end, mental health providers across the state - public, primary, private and community - must work together to ensure Tasmanians are supported seamlessly throughout their recovery journey, providing better outcomes for all Tasmanians."

While health represents a large chunk of the state government's $5 billion infrastructure spend over four years, the majority of projects continue funding from pre-existing commitments.

There's $391.2 million across the state's hospital and health system, over four years including.

This includes $79.8 million for the continued redevelopment of the Launceston General Hospital.

There's more than $14 million budgeted for works in 2020-21, representing $1.5 million more than previous forward estimates. However, the project has been delayed.

There's also $1.2 million allocated for the continued redevelopment of LGH Ward 4K in 2020-21, along with $15.4 million over four years for new beds, of which $3.7 million has been budgeted for 2020-21.

In the state's North-West, there's $33 million for the continued upgrade for the Mersey Community Hospital.

Estimated total costs for the MCH redevelopment have increased by almost $3 million, now at $37,386. This includes $28,888 million in 2020-21 and $4.1 million in forward estimates.

For the North West Regional Hospital there's $21 million of ongoing funding for the eight bed acute medical unite opened in 2019.

This includes more than $5 million budgeted in 2020-21, and $5 million each year over forward estimates.

In the South, there's $89.8 million for the Royal Hobart Hospital stage 2 redevelopment, including expansions for the emergency department.

Earlier this month, Health Minister Sarah Courtney announced there would be an additional $45.5 million into elective surgeries over the next 18 months.

She said this new funding, along with $15 million from the federal government, meant the health service could an estimated 8500 additional elective surgeries.

However, budget papers show $9.1 million of this will be rolled out in 2020-21, with 36.4 million in forward estimates.

The government also previously announced a health technology package, to modernise HR systems across the state and develop a 10-year digital health transformation.

There's $2.1 million budgeted for the package in 2020-21, $11 million in 2021-22 and $8.5 million in 2022-23.