Mass resignations amid warnings of a crisis and a court's looming decision on psychiatrist pay could force Australia's largest health system to come up with millions of dollars more funding.

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The NSW Industrial Relations Commission will hand down its decision on Friday in a wages dispute between the state's public psychiatrists and the government.

The psychiatrists had asked for a one-off, 25 per cent pay rise, arguing comparatively lower pay than in other jurisdictions and the private sector had created staff shortages

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