More than 20 regional hospitals in Victoria are set to experience budget cuts of up to 30 per cent in the coming financial year.
A board member of one of the affected hospitals, told ABC News that 25 health services have been informed of the cuts, forcing them to rely on reserves into 2025.
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Hospital leaders were reportedly shocked to learn of the planned reductions during a meeting with the health department’s chief financial officers on Thursday.
The source cautioned that these substantial cuts could have a “devastating impact” on small regional hospitals.
“It throws into question the health minister’s assurances that there will be no hospital closures under the proposed health services plan.”
The Victorian Healthcare Association (VHA) also expressed concern that budget reductions of up to 30 per cent would significantly impact hospital cash flow.
VHA CEO Leigh Clarke highlighted that rising costs, including insurance premiums, medical supplies, and COVID protections, have not been matched by government funding.
Ms Clarke previously said that the government must listen carefully to the concerns of services.
“‘It’s essential that there is no loss of community voice, impacts to system access and that any decisions prioritise the best interests of Victorian patients and the communities they live in,” she said.
“While any potential changes to structure and governance will ultimately impact services within the scope of the plan, all services will be affected in different ways.”
Victorian Health Minister Mary-Anne Thomas assured no hospitals would close as part of the state’s healthcare shake-up.
However, she acknowledged the possibility of hospital mergers, given the current structure of 76 independently governed health services.
“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.”
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