New South Wales faces a mental health crisis after 200 psychiatrists, about half the workforce, resigned over stalled pay negotiations and staff shortages.
Health Minister Ryan Park admitted the resignations would severely impact patients, but rejected the demanded 25 per cent pay rise, citing unaffordability.
The increase would add 90,000 dollars per psychiatrist annually, which Park deemed unsustainable.
The Australian Salaried Medical Officers Federation has criticised the government for neglecting retention issues, leaving one-third of psychiatrist roles unfilled.
Acting director Ian Lisser said psychiatrists feel cornered by difficult conditions and uncompetitive salaries, compared to other states.
NSW Health Secretary Susan Pearce acknowledged the challenge of replacing 200 psychiatrists and outlined contingency plans, including engaging private providers and adjusting workforce models.
The dispute will be addressed in the Industrial Relations Commission next week.