It has been reported that due to shortage in budget the Royal Hobart Hospital will witness 25 less beds. Moreover, two surgical theaters will also be closed down. The State Government has advised the hospital to impose a cut of $10.7 million in its spending so that in the coming four years about $45 million could be saved.

Following the recommendation from the State Government, the Royal Hobart Hospital has informed that number of elective surgeries will be reduced. However, the plans of the State Government have received criticism from the residents and union leaders.

As per the cuts, the hospital will be able to provide only emergency care. Patients who have been previously seeking care in the hospital will be left on their own to recover for next couple of years. Public Sector Union's Tom Lynch criticized the move by saying: "This is the bind that this Government has put us in through their waste and mismanagement".

While replying to the criticism, Deputy Premier Bryan Green said that the government doesn't have any other option rather than imposing cuts as the financial condition is already tangled. He further said that Tasmania would have to face the challenge unless and until any solution is brought in.