The local health service has been accused of "underhandedly terminating" the general manager of Katoomba and Springwood hospitals from her position.
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Blue Mountains MP, Trish Doyle, said she had been horrified by the news that Liz Harford would not be returning to the job she has held for more than three years.
Nepean Blue Mountains Local Health District in a short statement said only that: "Following a period of leave, Dr Elizabeth Harford will leave her position as general manager for Springwood Hospital and Blue Mountains District ANZAC Memorial Hospital."
It did not provide any further information about the circumstances of her departure but Ms Doyle was clear in a speech to Parliament on May 11.
She first paid tribute to Dr Harford, who has spent 42 years working in the public healthcare sector, two years as a research physiologist and 40 years as a nurse.
Ms Doyle outlined some of her career highlights, including management of a resuscitation and trauma room at Westmead Hospital, lecturing in postgraduate emergency and trauma nursing at Sydney University and writing part of the masters degree course content for emergency and trauma nursing.
Dr Harford, whose PhD focused on the history of nursing and medical treatment in casualty departments between 1870 and 1940, also worked with the University of NSW to develop a short course in primary nursing care.
She completed reviews of over 10 hospitals and services across the state, making recommendations for improvement. She worked as the director of nursing and midwifery across 19 facilities, including the Wagga Wagga Base Hospital and the Greater Southern Area Health Service.
Ms Doyle concluded: "Imagine my horror and that of my community, the medical staff council, the auxiliaries and the hospital staff to learn that the Nepean Blue Mountains Local Health District underhandedly terminated Dr Harford from her role as our beloved general manager of Blue Mountains hospital recently."
The Friends of Springwood Hospital were also dismayed.
Spokesman Richard Jackson-Hope said the auxiliary was alarmed at the removal of Dr Harford, "who did an excellent job in advocating for the staff of both hospitals and pushed for many improvements and staffing levels at both facilities".
Mr Jackson-Hope called for an investigation into the activities of the board of management at NBMLHD. He later said Ms Doyle had assured him she would raise the matter with the NSW health minister, Ryan Park.
The Gazette understands that Dr Harford is unable to comment on the matter.