MORE than $300 million will be wiped from the balance sheets of the region’s hospitals due to federal cutbacks, state Health Minister Jill Hennessy has claimed.
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South West Healthcare would be the biggest loser under the alleged cost-cutting, with $170 million slashed from its bottom line over the coming decade.
Under the state government projections, Western District Health Service would lose nearly $66 million over the next 10 years while Portland District Health would have $37 million less to work with during the same period.
Smaller hospitals across the region would also be affected. Terang and Mortlake, Moyne and Lyndoch are all expected to be hit with seven-figure shortfalls between now and 2025.
However, the figures have been disputed by the federal government. Wannon MP Dan Tehan yesterday claimed the data was developed for political purposes by the Andrews government.
South West Healthcare acting chief executive Andrew Trigg said the reductions outlined by the state health minister were cause for “significant concern”.
“The pressure on the public health system is both significant and growing and any reduction in funding magnifies the challenge,” Mr Trigg said.
“We are now analysing what this will mean for the health services we provide to the 110,000 people who live in our catchment.”
Mr Tehan said the federal figures were scurrilous and driven by the state government’s ideological agenda.
The Wannon Liberal MP said federal funding to the states would rise over the four-year period.
He said the 10-year projection by Ms Hennessy was unfounded.
“This is political scare-mongering of the worst kind from the Andrews government,” Mr Tehan said.
“These figures have no foundation and are driven by the Andrews government’s ideological bent.
“The facts are that health spending to Victoria will increase by 9 per cent, 9 per cent, 9 per cent and 6 per cent over the next four years.”
Ms Hennessy said Prime Minister Tony Abbott had been inflexible in negotiations over the National Health Reform Agreement, the mechanism which distributed federal funds to the states. She alleged negotiations between state health ministers last week resulted in deadlock.
“Before the election, Tony Abbott said he wouldn’t cut health, but all we’ve had is cut after cut after cut to our hospitals and health programs,” the state health minister said.
Ms Hennessy said the state government analysis calculated the amount each south-west hospital stood to lose based on the proportion of total federal funding the health services currently receive.
