Njernda, which is currently in the hands of special administrators, will be handed back to the community in the next two months.
Ms Dillon is currently chief executive officer of South East Tasmania Aboriginal Corporation and was selected ahead of a field of more than 30 applicants for the role.
Special administrator Jack James, from insolvency and business consulting firm Rodgers Reidy, was part of the selection committee which appointed Ms Dillon.
Rodgers Reidy was appointed by the Office of the Registrar of Indigenous Corporations (ORIC) as special administrator late last year.
Njernda was incorporated in 1991 and operates a medical centre and other health-related services for Indigenous and non-Indigenous patients.
Njernda’s services also extend to family support and family violence programs, placement support for out-of-home care, foster care and child safety.
Ms Dillon has a long and celebrated history in managing Aboriginal health services.
"We expect Tracey to start at Njernda at the end of the month, if not sooner,“ Mr James said..
“She will be moving to Echuca. It will not be a fly in and fly out arrangement.”
Mr James said Ms Dillon was the most qualified person for the role and, having worked in the Aboriginal corporation space for decades, would make a smooth transition into the new role.
"She has been in this space for a long time and has always been considered a frontrunner in the industry,“ Mr James said.
“She has a wealth of social and allied health experience.”
He said the selection process was very much based on experience and the high regard in which Ms Dillon was held in the Aboriginal community also contributed to the decision.
“We short-listed the applicants to five and interviewed all of those,” he said.
"We then narrowed it down further to just two and Tracey was selected.“
Mr James said a major focus of the special administrator was to have a chief executive in place before handing the corporation back to the community.
"Njernda has not had a CEO since October last year, getting on six months,“ he said.
“We will put together a new board at the end of the special administration. In fact, we expect to seek expressions of interest for board positions in the next month or so.”
Mr James said the special administration was due to finish in mid-May.
“By then we plan to have Njernda back in community control. We don’t like sitting in these roles very long,” he said.
"We are very conscious of community feelings during this process.“
He said finding a good chief executive was fundamental to the successful outcome of the special administration.
"Not all the work will be done while the special administration is in place,“ Mr James said.
“We will work alongside the CEO to bed things down in an operational sense.”
Njernda staff members were last week informed about the appointment.
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