Hobart Clinic chief resigns months after appointment amid reported clash with board
The Hobart Clinic closed in October, but reopened in November with a new board and chief executive. (ABC News: Kate Nickels)
In short:
The Hobart Clinic's chief executive has quit months into his appointment as head of the private mental health hospital.
It is understood the clinic's board and chief executive Arish Naresh were at loggerheads over governance issues.
What's next?
The state government is reviewing The Hobart Clinic board's corporate governance arrangements.
The Hobart Clinic's chief executive has quit amid a reported clash with the board and a state government-commissioned review of its corporate governance of the private mental health hospital, calling into question its six-month turnaround strategy.
In an email to staff yesterday, chief executive Arish Naresh, a senior healthcare industry professional, cited ongoing health issues related to a back injury for his decision to step down.
"A tremendous amount of work has gone into rebuilding and strengthening the clinic to where it stands today," Mr Naresh said.
"The commitment you show to your patients and to each other is what makes this place special."
Mr Naresh joined the clinic in May as the executive manager of program and clinical governance, and took over as chief executive in October.
The Hobart Clinc is Tasmania's only large-scale private mental health hospital. (ABC News: Luke Bowden)
The 27-bed Hobart Clinic — the last private mental health hospital in southern Tasmania — shut down briefly last October.
Former chief executive Kath Skinner, whose three-year tenure ended after the organisation failed a requirement of an audit conducted by the Health Department's Regulatory and Licensing Unit, was terminated by the previous board last September.
Ms Skinner has defended her tenure, saying she had taken the clinic to its first break-even financial result in years and attributing its poor financial prospects to withholding financial support.
A consortium spearheaded by finance consultant Tim Booker, and supported by the members of the clinic, the Health and Community Services Union (HACSU) and others, was successful in persuading Health Minister Bridget Archer to throw the Hobart Clinic a $2 million lifeline and give it six months to come up with a feasibility plan to make the facility sustainable over the long term.
A new three-person board was appointed, chaired by Mr Booker, and the facility re-opened in November. Mr Aresh was not a member of the board.
Since then, according to a company report seen by the ABC, the Hobart Clinic has been able to re-establish average occupancy at between 22 and 24 beds — approximately 80-90 per cent of capacity.
Tim Booker has chaired The Hobart Clinic board since the mental health hospital reopened in November. (ABC News: Maren Preuss)
As of late February, according to the report, the clinic had rebuilt its executive ranks, hiring a full-time registrar and head of human resources, and rebuilt the team of admitting psychiatrists from two to seven.
This turnaround, despite a fire in November and a flood in January, led the Regulatory and Licensing Unit (RLU) to give the clinic a highly positive audit review last month.
"What we heard and saw on February 24 was that the RLU were speaking highly of how well the clinic was running,"one source said.
"They even [said] that staff look happier than when they came last year, complimenting the culture."
However, it is understood that the board and chief executive were at loggerheads over corporate governance issues, and this has led to the resignations of some staff.
The ABC has been told that two senior clinical staff members resigned in recent days.
Mid-last month, according to a letter seen by the ABC, State Growth Department secretary Craig Limkin wrote to clinic chair Tim Booker:
"The Department of State Growth has recently been made aware of matters relating to aspects of The Hobart Clinic's governance arrangements …
"The matters raised represent one perspective only. However, given the State's obligations in administering public funds, it is appropriate that the Department seek independent assurance to inform its consideration …
"Accordingly, it is proposed that State Growth engage an appropriately qualified and independent consultant to undertake a focused review of The Hobart Clinic's corporate governance arrangements …"
A Tasmanian government spokesperson said staffing issues were "a matter for the Hobart Clinic and its board".
"The $2 million grant was subject to a number of terms, and it is incumbent on the Hobart Clinic board to ensure it is meeting these terms, to ensure the best interests of staff and patients," they said.
Mr Booker and HACSU state secretary Robbie Moore have all been approached for comment.