The state government has signed off on an agreement with Calvary Health Care to deliver a private hospital next to the Launceston General Hospital.
The Memorandum of Understanding paves the way for the development of the proposed $120 million co-located facility.
Premier Peter Gutwein hopes the establishment of a co-located private hospital will bring more specialised health professionals to the region, while also providing a jobs boost for local industries.
“Accelerating the delivery of the development of a co-located hospital will bring an estimated investment of around $120 million to the city, which is expected to create 1,400 direct and indirect jobs in the building and construction sector,” Mr Gutwein said.
Under the terms of the MOU, the government will finalise a land sale agreement to sell the land at 52 Frankland Street to Calvary at market value, on the condition it must be used to deliver health services.
It also includes an agreement to deliver a covered walkway bridge to connect the two hospitals.
Health Minister Jeremy Rockliff says the state government will work with Calvary to ensure the project takes into account the needs of both public and private patients and staff.
“Co-located private and public hospitals have been extremely successful and beneficial to communities across Australia, and we know they can help attract and help to retain difficult to recruit specialists to our healthcare system," he said.
“This will deliver additional and complementary services to support and reduce pressure on the LGH.”
As part of the agreement, construction on the new hospital must commence within two years of a development application being approved.