Health bureaucrats given notice, suspended

A top Tasmanian health bureaucrat has been given 48 hours to explain why she should not be sacked over allegations by the state's Integrity Commission.

The commission has said suspended Royal Hobart Hospital boss Jane Holden improperly employed family members and associates.

Health Minister Michael Ferguson has told parliament Ms Holden's substantive position will be abolished and her employment terminated if her response is not deemed adequate.

She remains contracted under the department's previous structure - on a reported $340,000 salary - and was acting in the role of chief executive of the state's new southern health organisation.

The other top bureaucrat named in the report, Gavin Austin, has been suspended on full pay after failing to respond to a show cause request from the premier.

A state service code of conduct investigation will consider allegations against Mr Austin, which include that he employed his wife and son in the state's northwest health organisation without proper process.

"Today I'm sure that all Tasmanians share in my disbelief and the government's disbelief at the report's findings," Mr Ferguson said.

Ms Holden is yet to publicly comment on the allegations made against her.

Mr Austin told the ABC in a text message: "I do dispute the allegations in the report. I look forward to the outcome of the investigation."