The discussion surrounding Victoria’s Healthcare sector has reached monumental levels and the topic of funding is at its very centre.
Fuelling the fire, the Victorian Government’s recent contribution of $1.5 billion to the state’s healthcare sector has prompted an array of mixed discussion.
From concerns for the ongoing viability and function of Victoria’s healthcare system to questions surrounding the state’s level of debt, more information about how and where this funding will be allocated is yet to surface.
Eildon MP and Liberal parliamentarian Cindy McLeish said, “’where is this money going?’ and ‘where is it coming from?’ are the two most asked questions about the government’s announcement to inject $1.5 billion injection into its failing healthcare system.”
“Despite the backflip of hospital amalgamations for the time being, the Government has been silent on the details around this investment.
“This figure is similar to that announced by the Labor Government in 2022 to rebuild the Maroondah hospital at the existing site which seems to be at a bit of a standstill at the moment.”
Ms McLeish raised concerns about the amount of debt owed by the state of Victoria.
“The $1.5 billion comes outside the Victorian budget so it means services elsewhere will be cut or the Government will borrow further and extend our debt out to $190 billion – already more than NSW, Qld and Tasmania combined,” she said.
“On top of properly funding our health system, our roads are at a crisis point, we have a housing crisis, our parks are being stripped of funding so basic repairs aren’t being made. We need to curtail wastage and budget blowouts and fund what matters to peoples lives.
“Collectively, health services across the state are already carrying $1.5billion of debt, and on top of that it is estimated that the recently agreed EBA for nurses and midwives will cost around $1billion. The government needs to give us details, not hope that people will be placated by an announcement.”
Eastern Health, the local public health service with hospitals dotted around the Yarra Ranges and Knox from Healesville to Ferntree Gully, was contacted by the Star Mail for further information regarding the needs of Victoria’s Healthcare system and the distribution of the $1.5 billion worth of funding.
The following statement attributed to an Eastern Health spokesperson was issued: “Eastern Health welcomes the additional funding in the Victorian health system, and we will know more about our specific situation once budgets are finalised in the coming weeks.”
First contacted on 15 August, despite requests for further information, Eastern Health provided no further comments as of Friday 30 August just over two weeks later.
A spokesperson from the Victorian Treasurer’s office said, “Victoria’s health system is one of the best in the world, and our reforms will keep us on track to deliver even better patient care through a reformed health system that is better integrated and connected, at the same time protecting the local services we know Victorians trust and rely on.”
“We will always support our hospitals – because that’s what Labor does,” they said.
“As a Government, we’ve made record investment in our hospitals. That includes recruiting a record number of doctors and nurses, record funding for our hospitals and health infrastructure – and of course, our record pay deal for Victorian nurses and we’re continuing to build on that record.”
The statements provided by the Victorian Treasurer’s Office confirmed that the Victorian budget strategy remains on track.
“We remain on track with our fiscal strategy. The increased investment in our hospitals will be accounted for through the usual reporting methods, including the Budget Update later this year,” the spokesperson said.
“The Allan Labor Government will deliver a better, more connected health system – ensuring patients can get the care they need, in their own communities and will invest a further $1.5 billion to support our hospitals deliver world-class care, building on the more than $8.8 billion we invested in the Budget.
“This additional investment delivers the funding hospitals told us they needed to meet record demand, while also enabling Victoria to continue delivering a record number of elective surgeries and implement electronic Medical Record (eMR).”
The spokesperson affirmed that the Department of Health would be finalising its new budgets by the end of August.
“With this further investment, the Department of Health will now work with health services to finalise their budgets by the end of [last] month.”
The spokesperson said, “The Labor Government has also accepted in full or accepted in principle 26 of 27 recommendations proposed by the Expert Advisory Committee, as part of its Health Services Plan.”
“The Labor Government will deliver a number of key reforms in response to these recommendations. It will not, however, accept the recommendation to forcibly amalgamate, merge, or consolidate any of Victoria’s health services. All health services will retain individual boards.”
