It's back to the drawing board for developers behind a $50 million private hospital proposed for the Hobart suburb of New Town.

Council resoundingly rejected the Main Road development at last night's meeting.

The 8-2 vote came after consideration of the impact of 24-hour vehicle movements on residential amenity, noise, overshadowing and streetscape issues. 

The meeting ended with five Aldermen walking out following a shouting match over Councillor Bill Harvey's urgency motion against the Tasmanian Government's anti-protest laws.

Alderman Simon Behrakis has described it as a complete waste of ratepayers' funds.

"The Council has important work to do on behalf of the people of Hobart, and these motions are a complete waste of ratepayer’s funds and Council time, so that people like Councillor Harvey can play politics on issues he was not elected to represent the people on,” he said.