Tamworth hospital's palliative care unit will be moved back into the specially-designed Nioka Ward as early as Friday, after a backdown by the local health district.
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The backflip comes after the family of Maxwell Thomas spoke out about what they called a "disgrace", the death of the 77-year-old in a crowded, ancient ward.
The Nioka ward is currently being used for COVID-19 patients, with palliative patients relegated to Surgical 3 Ward.
Hunter New England Health executive director of rural and regional health services, Susan Heyman, said palliative patients would go back into the state-of-the-art purpose-built facility.
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"It should happen tomorrow, but there's always things that can go wrong," she said.
"We do apologise to the Thomas family for their experiences and do extend our sympathy for their loss. It's always a difficult time when you lose someone they love and someone that's part of your family. And the fact that that was made more difficult is not something that we would want. I'm deeply sorry for that experience and for any other patients that may have had a less-than-optimum experience."
David Thomas told the Leader the family was "over the moon" at the outcome.
"To save another family going through what we had to go through, to save one family, we're just over the moon," he said.
Friends of Nioka vice-president Bryan Singh attended a meeting with Ms Heyman and Tamworth MP Kevin Anderson to sort out what he had criticised on Wednesday as an "not satisfactory".
He said the health service had made solving the problem their number one priority on Thursday.
"They're very responsive to the community's reaction to this," he said.
"I think this is a response to the public's reaction to this story."
Mr Anderson said any death in the palliative care ward needs to be "dignified and respectful".
"Purpose built for palliative care for people to spend their last days with their loved ones in that loving, warm environment" he said.
"And that should happen."
Ms Heyman said COVID patients were going to a section of the hospital where staff could maintain infection control.
They will be housed in individual rooms, though if there's a serious outbreak the group may need to be moved together, she said.
She conceded the timing of the decision to shift palliative care once again, wasn't a coincidence.
"What the Thomas family reminds us of the importance to be talking to the Friends of Nioka and making sure that we're really communicating well and we're really responsive in changing our plans. Every day matters," she said.
"Locally, everyone's working with the best of intentions."
Ms Heyman said Nioka wouldn't need to be moved again.
"It will stay where it is. Every intention is for Nioka to be returned and to remain there," she said.
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