HOSPITALS across regional Victoria may have their budgets cut up to 30 per cent in the next financial year, leaving hospitals to dip into their cash reserves.
Last week the ABC reported a board member of a regional Victorian hospital had said 25 health services were told they would receive cuts to their grants.
The unnamed source told the ABC they had learned of the planned cuts during a meeting held last Thursday between the Victorian health department and chief financial officers of hospitals.
The source said the planned budget cuts would have a “devastating impact on the services of small regional hospitals” and force many to draw on reserves in 2025.
Shadow Minister for Health Georgie Crozier said the cuts to regional health services would “make it impossible for them to continue to serve their community”.
“The Allan Labor Government has admitted it will cut funding to at least 20 of Victoria’s health services,” she said.
“Labor must come clean on their secret plan to cut funding and amalgamate health services across Victoria.
“Labor’s priorities are all wrong – Premier Jacinta Allan can find the money for a $200 billion train line in Melbourne, but not the money to keep local health services up and running.
“Labor cannot manage money, cannot manage our health system and Victorians are paying the price.”
Victorian Healthcare Association chief executive Leigh Clarke said the cuts go “well beyond the recent request to find savings across non-clinical staff and services”.
“Given most small rural health services have strong balance sheets through years of good financial management, this is a rejection of good performance,” she said.
“The reality is that if you are running a small rural health service, you are likely running a total budget in the order of several million and to have up to a third of that taken away will have very tangible impacts.
“We know that health services have been grappling with long-standing year-on-year structural deficits due to factors outside of their control and largely driven by increasing costs not factored into the health budget, like rising insurance premiums.
“The Victorian State Budget 24-25 intended to address that through a significant increase in the price paid for healthcare, but when considering all cost containment measures – that uplift is negligible.”
Ms Clarke called for “clarity” from the Victorian Government on the future of the state’s public health sector.
“There is an absence of clear information on the trajectory of governance reform, and the government has not filled the vacuum of noise over the past few weeks.
“We want to see clarity on the timelines underpinning any major reform, the evidence supporting the options on the table and some clarity about which course of action the Victorian Government intends to pursue.
“Given we are seeing funds pulled out of services – the question now becomes how do you do health service reform well and how do you do it without compromising on the delivery of high-quality care.”
Minister for Health Mary-Anne Thomas reiterated her stance that the Victorian Labor Government were committed to the future of regional hospitals, saying “there will be no hospital closures under my watch.”
“While others are playing politics, we are focused on delivering patients the best care and that is exactly what our record investment into our hospitals will deliver,” she said.
“Unlike the Liberals and Nations who closed 12 country hospitals – we’re focusing on delivering more doctors and nurses, better facilities and the best possible care to all Victorians no matter where they live.”
Rural Victorian health services are awaiting the handing down of a health services plan from an expert advisory committee chaired by former Bendigo MP Bob Cameron.
The merging of hospitals has been outlined as one avenue the plan could take, with it being reported Victoria’s 76 health services could be amalgamated to just 12.
Speaking on radio last Wednesday, Ms Thomas said the Victorian health department “are open to a range of ideas that might help us”.
“The focus is on designing a system that can help those needs,” she said.
“No decisions have been taken but we are very seriously examining the challenges that are currently being faced and our focus is on putting patients at the centre of every decision we make.
“We currently have 76 health services, all with their own boards.
“That’s great and it has served us well but it is time to look at whether it is the right model for the future.”
Member for Mildura Jade Benham said any decision to amalgamate regional and rural hospitals would impact local jobs and force longer waiting list times.
“These plans to amalgamate hospitals will adversely impact rural and regional communities that have already been ignored by the Government,” she said.
“Our local hospitals are not just healthcare providers; they are integral to the fabric of our communities.”
