Sacked Tas health boss fails to sue state

A former senior public health official sacked by the Tasmanian government has failed in her bid to sue the state.

Jane Elizabeth Holden wanted $2 million to make up for lost income and reputational damage after her five-year employment contract inked in 2012 and worth about $300,000 per annum was cut short in June 2014.

But Supreme Court justice Shan Tennent on Monday rejected Holden's claim, instead supporting the government's move to make her redundant as it made changes to the state's health department.

"I am not satisfied that (Holden) has proved on the balance of probabilities that the (state) has breached the old contract," the judge said.

"The plaintiff's contract of employment contained specific terms, including as to termination."

At one time responsible for the operation of the Royal Hobart Hospital, Holden was seconded to a number of different roles under the contract in question, including as head of one of the state's regional health departments.

Justice Tennent further ordered that Holden pay the state's legal costs, in a move welcomed by the Liberal government.

"This is a good outcome for taxpayers," Health Minister Michael Ferguson said in a brief statement welcoming the result.

Holden was excused from attending Monday's judgment with the judge saying a copy would be emailed to her.

Media outlets recently reported Holden was working in Papua New Guinea.