Victoria's public hospital lobby says the state government is seriously endangering its plans to reshape the health system by slashing hospital budgets. or signup to continue reading Health Minister Mary-Anne Thomas will soon decide whether to amalgamate health services across Victoria, but she has just slashed hospital budgets throughout the state in a bid to control the Health Department's spiralling finances. The Victorian Healthcare Association - which represents most of Victoria's public hospitals - said the austerity drive raised "serious questions" about how the state could manage the reforms without making the system worse, rather than better.
"We're not clear how the Victorian Government intends to achieve governance reform in this incredibly tight fiscal environment," VHA chief executive Leigh Clarke said. "When you consider the cost cutting measures our member services are facing, when combined with the rising cost of service delivery - there is a serious question about how reform can be done well." The architect of Victoria's hospital funding system, Stephen Duckett, echoed the warning and said he was shocked by the government's approach.
Ms Thomas has consistently denied hospitals have been hit with budget cuts in recent weeks, But Professor Duckett said health services were facing "impossible" cut backs. "Some of the budget cuts are too big to be done in one year, so it's just crazy that that's what they're trying to do," he said. "It's just impossible for a ser.