Police arrived at the scene shortly before 1 PM following multiple reports of the man discharging a firearm at a nearby residence.

As a result of the confrontation, the man was shot dead by police outside Manning Base Hospital.

The New South Wales homicide squad is now investigating the shooting incident, which is also subject to the independent review.

Fortunately, no police officers or bystanders were injured during the incident.

During negotiations, the man allegedly aimed a firearm at the police, which prompted them to return fire.

The incident unfolded around midday when New South Wales Police received reports of a man firing shots into the air on Rouse Street in Wingham, located approximately 8 kilometers west of Taree.

About 30 minutes after the initial reports, police located the man in the car park of Manning Base Hospital, nearly 12 kilometers from where the incident began.

At approximately 12:55 PM, officers confronted the man in the hospital's car park.

In response to the shooting, a critical incident was declared, and an independent review of the circumstances surrounding the event was initiated.

Emergency services rendered immediate assistance, and the man, believed to be in his 30s, was transported to Manning Base Hospital, where he died shortly after arrival.

A crime scene has been established along Pulteney Street and High Street, with a blue tarp placed outside the hospital's mental health and drug and alcohol services unit where the shooting occurred.