Monash Health could be forced to make proposed cuts of up to $200 million as part of budget savings imposed by the State Government.
The figure was last week reported by The Age, while documenting a leaked recording of uneasy Victorian hospital executives discussing possible bed closures, elective surgery cuts, cancelling breast screening and special-care cots.
Discussions are ongoing between health services and the Government, with final budgets to be set in coming weeks.
A State Government spokesperson said the government was investing a “record $20 billion” in hospitals this year, with an additional $8.8 billion over several years announced in this year’s budget. However, the Victorian Healthcare Association says health services across the state are being expected to break-even by 30 June 2025 on top of “significant” funding cuts.
It stated that health services had no choice but to propose frontline staff redundancies, bed closures and elective surgery cuts.
“Doing more with less is not an option, particularly as many services have already made cuts to non-clinical staff and services,” VMA chief executive Leigh Clarke said.
“This budget squeeze leaves no more room to move.”
Health Minister Mary-Anne Thomas was recently reported to say the savings could be met by reducing travel, executive wages and staff in non-clinical areas such as communications and marketing.
“We are working to make sure that the money – the record money – that we’ve invested in health is being used and prioritised towards the delivery of patient care,” she reportedly told The Age.
Ms Clarke said the measures “go way beyond any perceived duplication or wastage”.
“The consequences … will mean redundancies of frontline staff, the closure of hospital beds, and longer waiting lists for urgent care and planned surgery,’ she said.
“‘We’re calling on the Department of Health to take a hard look at the budgets of services when it receives these submitted budget action plans and really consider the needs of local communities, including the fact that we have an ageing and growing population and changing patient needs.”
Opposition health spokesperson Georgie Crozier said “Victoria’s health services need to be supported, not being bought to their knees because of Labor’s savage funding cuts”.
“Labor cannot manage money, cannot manage our health system and it is Victorians who are paying the price.”
A State Government spokesperson said it was “delivering a massive 28 per cent pay rise to Victoria’s nurses and midwives”.
“Only Labor invests in our health system. The only political party that cuts and closes hospitals is the Liberal Party.”
Monash Health, considered the state’s largest public health service, runs Monash Medical Centre, Dandenong Hospital and Casey Hospital.
According to Monash Health’s 2022-’23 annual report, it sourced revenue of $3.2 billion and recorded a $173 million surplus.
A Monash Health spokesperson said its annual budget was “currently being developed in close consultation with the Department of Health to deliver the care our community needs”.
