The annual report found since 2013, Tasmania had been the worst performer in category two elective surgery wait times, and one of the worst performers for patients visiting emergency departments nationally.

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AMA president Dr Omar Khorshid said the report card highlighted a concerning picture of the state's health system that should worry all Tasmanians.

"We are at a crisis point," he said. "We need a long-term plan and a solution for our public hospitals.

"We have an ageing population whose demand for health care, including hospital care, will only increase."

Dr Khorshid said immediate and extra funding was required to address the healthcare shortfall in Tasmania and called on the state government to ensure public hospitals were being prioritised for state and federal funds.

"The federal government pays for 45 per cent of public hospital funding, we think it should be 50 per cent and that extra money should be reinvested by our state governments into public hospitals," he said.

"We're also asking state governments to commit that extra 5 per cent, if it does come from the federal government, that it will stay in health and it will not be taken out to other parts of government expenditure - that is absolutely critical."

Dr Khorshid said he had written to each state and territory health minister - including the Tasmanian Health Minister Jeremy Rockliff - seeking support for the extra funding, but thus far has only received a response from one state.

"Yesterday I got that assurance from the health minister of South Australia and also from the opposition leader coming up to their election on Saturday, I'm seeking the same from the Tasmanian government," he said.

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Health Minister Jeremy Rockliff said he recognised more work was needed to ensure the national funding model was as effective and equitable as possible.

"We will continue to advocate for Tasmania to receive its fair share of health funding from the Australian government to ensure we can respond effectively to increasing demand," he said.

Chairman of the AMA Tasmania council Dr Glenn Richardson said an ageing population and high rates of chronic illnesses meant the LGH could no longer meet the needs of the Northern community.

"This is a great little hospital, it's typical of our regional and metropolitan hospitals, it's just two thirds the size it needs to be and we've got a tsunami of ageing patients, we've got a tsunami of diseases that go with them and we need to somehow fix this," he said.

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Dr Richardson said the issues facing the LGH were being compounded by the hospital's inability to move patients through the system before services reached a critical point.

"If you look behind us we've got an ED that's in crisis," he said. "Everyday 140, 150, more people end up in our emergency department, a good 30 are admitted and they have nowhere to go.

"We have nurses who are spending all day looking after admitted patients and not seeing the next emergency patient."

The release of the AMA's 2022 Report Card fell on the same day the state government released its implementation program for the redevelopment of the LGH precinct.

The implementation program provided a roadmap for the redevelopment over four stages, culminating in the construction of a new Northside tower expected to increase the hospital's capacity by 12,000 square metres by 2034.

The redevelopment will also see improvements to the LGH service list including a new mental health services precinct, an expanded and redesigned acute care zone, and a new medical inpatient unit for older patients.

Dr Richardson said while the LGH upgrade would benefit the community, the 10-year-timeframe was too long with patients already waiting beyond the recommended time frame for some services.

"First of all, I'd say 10 years is just too long, he said.

"I understand the state government's got financial constraints, but our problem is we need that now in the next few years.

"I've seen the plan released today. It isn't just building a building, it's staffing the wards as well so that we've got the doctors and the nurses and the physios to look after the patients.

"We need additional funding and we need it now."

Mr Rockliff said he was disappointed by the AMA's assessment of the public hospital system and pointed to ongoing investments being made by the government.

"We have employed more staff, opened more beds and we are continuing to invest heavily in hospital infrastructure including new wards, mental health precincts and expanded emergency departments, whilst also expanding community-based care," he said.

Dr Richardson said considering the current state of Tasmania's health system, he did not believe a new stadium was a priority for the state.

"From a purely health point of view no, we wouldn't be pushing for a new stadium - as much as we'd like to see AFL played in Tasmania and have our own team," he said.

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Labor leader Rebecca White said the recent decisions by the state government to commit $750 million for a new Southern stadium as part of its bid to secure an AFL team was a misalignment of priorities.

"I would expect on behalf of every single Tasmanian that this government would deliver health spending where it's needed and that's in the health system and not divert it to other things," she said.

"We've seen this government is obsessed with sport, It loves to fund sport over funding health.

Premier Peter Gutwein had dismissed the either-or-argument concerning the proposal, saying a stadium would bring its own health benefits.

"I believe we can walk and chew gum at the same time," he said,

The premier said the government had made a significant investment in the state's major hospitals the LGH, North-West Regional Hospital, Mersey Community Hospital and the Royal Hobart Hospital.

"In total, around a $1.5 billion worth of investment over 10 years into our hospital and health infrastructure to ensure that we have got the necessary access for people that are looking for health services," he said.

The premier said a stadium would see more Tasmanians engage with outdoor social activities, providing greater health outcomes in the future.

"Sport will actually impact the longer-term social and health outcomes that we have in the state," he said.

"If we have a healthier society, in decades to come we'll have less people wanting, or needing to access our health services."

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