Only two years' funding for Tas centre: PM

The federal government will fork out $10 million over two years to fund a specialist health centre at Launceston, but has signalled there will be no more money after that.

Prime Minister Tony Abbott announced the funding on Thursday for the John L. Grove Centre, the sole provider of critical aged care rehabilitation services in Tasmania's north.

"The centre will be able to deliver services that will often prevent expensive and avoidable hospitalisation," Mr Abbott said.

But there was a sting in the tail - Mr Abbott said the state would have to find its own money for the centre once the funding dried up on July 1, 2017.

Tasmanian Health Minister Michael Ferguson has welcomed the interim commitment.

He says the $10 million will allow the state to operate the centre "while continuing to get the state budget on a sustainable footing so we can invest in essential services into the future".

With the Tasmanian budget due to be handed down next Thursday, all eyes will be on whether the state government, which is in the process of a health system reform, will make provisions in its forward estimates for the John L Grove Centre.

State opposition health spokeswoman Rebecca White says while the commonwealth announcement is good news, the Tasmanian government must take the baton in 2017.

"We'd expect to see that reflected in next week's state budget, she said.

On Friday, Mr Abbott is expected to provide an update on the funding arrangement for northwest Tasmania's Mersey Community Hospital.

Since 2007, it has been funded by the federal government but operated the state, and the agreement expires next month.