Tas hospital funding imminent: Hodgman

The federal government is expected to continue a crucial funding arrangement for Tasmania's Mersey Community Hospital.

If the deal does not go through, a multimillion dollar hole could be blown in the coming state budget.

Premier Will Hodgman on Thursday gave the strongest indication to date that he had reached a deal with Canberra, under which the Abbott government would pay for the Mersey hospital in Burnie's northwest.

"We're very confident about a positive outcome," he said.

Prime Minister Tony Abbott is expected to visit the region on Friday amid high expectations of an announcement.

Asked how he could formulate a budget without certainty over the hospital's funding, Mr Hodgman said: "I'm not going to pre-empt any other announcements that may or may not be made by the federal government."

Canberra took over funding the Mersey in 2007 after the state threatened to downgrade the hospital.

It has since remained federally funded and state-operated but the agreement expires next month.

There was no dollar figure allocated for the hospital's funding in the federal budget but Treasurer Joe Hockey said it was a priority issue.

Mr Hodgman said Canberra had set a precedent by funding the hospital in the past.

"The federal government has invested in the Mersey (and) we believe they have a responsibility to ensure it's secure," he said.