Tasmania's Health Minister has been criticised over hospital funding soon after he announced emergency department money.

The Government is funding an extra 12 beds at the Launceston General Hospital (LGH) in response to staff complaints of risky procedures, low resource levels and a raft of resignations.

The extra beds are expected to be available in around two weeks, and the health service will hire an additional 17 nurses to staff them.

The extra beds and staff have been approved by the Treasurer, despite requiring funding over and above the $30 million health sector top up from the May state budget.

Australian Medical Association Tasmanian chief Tim Greenaway says the hospital was woefully dysfunctional.

He said that the money for extra beds was welcome, but warned that it would only be a temporary fix if health funding does not significantly increase.

“It is very harmful to stay in the emergency department for an extended period of time,” he told reporters.

“Doctors and nurses can't work any harder than they do now.”

The AMA’s view is backed by a report by independent health analyst Martyn Goddard, who says the stats show state and federal government funding is well short of what is needed.

His report found that inflation, new drug costs and rising patient numbers mean that patient care funding next financial year will be 7 per cent lower than is required.

That figure is on track to compound to 30 per cent, or $357 million, over the coming four years.