Health Minister Guy Barnett addressed the St Marys community on Wednesday to give an update on concerns around health services in the region.
It follows the resignation of the town's only remaining GP Dr Cyril Latt, who resigned mid-August after 16 years.
Mr Barnett said Ochre Health would provide health services from the St Marys Community Health Centre from October 2.
St Marys residents are still concerned the announcement is merely a "band aid" solution.
Resident Barbara Longue attended the meeting and said she was "thrilled" to know the government was bringing on Ochre Health.
"It'll guarantee continuity for the hospital," Ms Longue said.
"They're still working on what the GP practice will look like, but we're guaranteed we've got that transition in place and it should be a smooth transition with the current doctor."
She said the viability of the GP practices, as well as the pharmacies in rural Tasmania, was a "very real challenge."
"There's a massive amount of work to be done and particularly in a state with such low density population; they certainly know that it's cheaper to take care of the people where they are than have them all descend on the LGH," she said.
"It's very relevant that both parties are trying to look politically at how to create more health versus just treating disease."
Mr Barnett said the government wanted to build trust in the community.
"What's important today is the announcement that health services from the St Marys district hospital will continue, and measures are now put in place to ensure that occurs," Mr Barnett said.
"We'll be working in the community to ensure that our primary health care services can improve.
"This is a big step forward, today is a commitment to ongoing conversation and communication.
"We want to get the feedback from the local community and deliver better rural and regional health services for this local community and across Tasmania."
Opposition health spokesperson Anita Dow said the government had been "completely heartless" in its handling of this situation and had shown a "complete lack of disrespect and neglect to the St Marys community and surrounds."
"While today's announcement by the Liberal government is a welcome first step, it is nothing more than a band-aid solution," Ms Dow said.
"The reality is that the people of St Marys and surrounds still do not have a permanent GP.
"This disgraceful outcome has occurred under the leadership of Premier Jeremy Rockliff, who was Health Minister when these issues were highlighted."
She said Labor's health policy would provide an additional rural generalist and five nurse practitioners to the St Marys Hospital, providing the necessary support to the local GP.
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