Tasmania's Premier Will Hodgman has used his speech at the Liberal Party's state council to tell party faithful that demand for health services is outstripping supply in the state, and the current situation in health is "not good enough".

Mr Hodgman told delegates at the annual party conference that health investment was a proven top priority for the Tasmanian Government.

"But the truth is, that demand for services is also escalating, and it's outstripping supply," he said.

Mr Hodgman said since 2016, demand in Tasmania's emergency departments had risen by more than 7,000 patients a year.

He told the room that 12 years ago, the Royal Hobart Hospital Emergency Department treated an average of 108 patients a day, but it now needed to be able to deal with 222 patients a day.

"We do have a very real challenge of meeting today's demand in yesterday's hospital," he said.

The Royal's emergency department deals with an average of 222 patients a day. ( ABC News )

He talked up the delivery of the redeveloped hospital, which is set for completion in the middle of next year.

Mr Hodgman said the State Government was continuing to reform a health system that was disconnected and dysfunctional in its second term.

"We know it's not good enough, it's a challenge we accept responsibility for and we will respond to the additional demand where we can," he said.

Mr Hodgman told delegates his government was investing more in health than any previous Tasmanian government, and had recently delivered 22 more beds for the repatriation centre in Hobart.

Figures released last week showed elective surgery waitlists in Tasmania rose by 46 per cent over the past year, with just one third of the Royal's semi-urgent elective surgery patients seen within clinically recommended timeframes.

Last month a leaked report revealed the health system was underfunded "in excess of $90 million a year".

Delegates at the state council debated several motions around parliamentary and local government reform.

A motion calling on the Government to consider scrapping the Hare-Clark electoral system for a "more appropriate" electoral mechanism was carried without debate.

Delegates also stepped up pressure on the State Government around local government amalgamations, supporting a motion for the Tasmanian Government to investigate the amalgamations of local councils and set policies and plans for local councils to follow.

The council carried a motion from the Young Liberals to restore the size of the House of Assembly to 35.

On Saturday, the Prime Minister Scott Morrison urged members to get behind the party in the lead up to next year's federal election.