Western suburbs hospitals face almost $800 million in funding cuts in the next decade under tough budget measures by the federal government.
As the government sharpens the razor to curb spending in the face of falling revenue, new analysis shows Victorian hospitals face a $13.6 billion shortfall in funding in the next 10 years.
State Health Minister Jill Hennessy said the Abbott government had walked away from key components of the National Health Reform Agreement, removing funding guarantees and cutting the Commonwealth’s contributions to Victoria’s public hospitals from July, 2017.
She said the cuts would lead to emergency department backlogs and a blowout in elective surgery waiting lists.
“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,” she said.
“The Abbott Government’s cuts mean Victorians will wait longer for surgery they need.”
Federal savings from cutting funding to the states for hospitals and schools are projected to rise from $1 billion in 2017-18 to $10 billion by 2020-21.
Treasurer Joe Hockey said Labor’s formula for growth in funding was unsustainable and states must find their own funding for hospitals.
“The states need to accept responsibility for the things they run,” he said. “If they do that and if we’re all accountable for the things we are actually responsible for, we’ll have a more efficient system.”
The cuts mean Western Health stands to lose $794 million in projected funding.
Operations executive director Russell Harrison said such cuts would place a heavy burden on the area’s hospitals, including those in Footscray, Williamstown and Sunshine.
“We trust that a resolution will be reached to prevent budget changes of this magnitude because there is no doubt they would have a profound impact on Western Health’s ability to provide the best care to its patients.”
