The Hobart Clinic Board Cleared of Governance Concerns
External Review Finds No Significant Issues
An external review commissioned by Tasmania's Department of State Growth has cleared The Hobart Clinic's board of significant governance concerns.
The review, conducted by WLF Accounting and Advisory, investigated procurement practices, related party transactions, and conflict of interest management following a formal complaint from former chief executive Arish Naresh.
Preliminary findings from both internal and external reviews found no significant governance concerns. The reviews concluded that the board acted in the best interests of the organization, and that conflict of interest allegations were unsubstantiated.
Background: A Facility Under Pressure
The Hobart Clinic is a 27-bed non-profit mental health facility in Rokeby, Tasmania. It received a $2 million lifeline from the Tasmanian government in October 2024 after facing financial pressure and a temporary closure. The clinic reopened in November under a new board led by chairman Tim Booker.
The Allegations and Complaint
Arish Naresh's complaint raised several specific concerns:
- Engagement of chairman Tim Booker's consulting firm, Apex Advisory, for financial reporting
- Awarding of a $100,000+ contract to Howrah Plumbing, a company on whose advisory board Booker serves
- Temporary engagement of director Rob Walters's partner, Caroline Wells, as board secretary/governance officer
- Allegations of workplace conduct failures, including bullying and harassment, with an insurer hiring a private investigator
Current Staffing Situation
The clinic now has only one consulting psychiatrist serving 18 in-patients, following a wave of resignations.
Staff departures include clinical director Dr Hannah Lake and psychiatrists Ed Elcock and Ben Harwood. The clinic had earlier employed seven psychiatrists.
Partnership Negotiations Under Scrutiny
The board is exploring partnerships to expand capacity to 45-50 beds. Potential partners include for-profit Aurora Healthcare, which operates 21 mental health facilities.
Concerns have been raised about conflicts of interest: Hobart Clinic director Benjamin Uprichard is also CEO of Aurora's Currumbin Clinic. The clinic spokesperson stated that any real or perceived conflicts will be managed at board level.
Reactions and Concerns
The Health and Community Service Union (HACSU) expressed concerns about lack of consultation with staff regarding potential sale and about staffing levels.
A Hobart Clinic spokesperson confirmed allegations were investigated and both internal and external reviews found no significant governance concerns.
The Department of State Growth declined comment, citing the ongoing independent review.
The state health minister's spokesperson stated no further government funding will be provided.
Government Funding Breakdown
- $1 million provided to date
- Additional $1 million available, subject to the clinic meeting grant deed requirements