A cash-strapped Monash Health has stated that its state-topping $329 million deficit will not impact timely hospital care in the South East.
The health service, which includes Monash Medical Centre and Dandenong and Casey hospitals, stated the operating loss in its 2023-’24 annual report. The next-worst performing health services, Northern Health, Western Health and Eastern Health, posted $100-million-plus deficits
Monash also reported just 2.1 days of available cash – well short of its 14-days target – and a $129 million cut in State Government operational funding.
Its financial decline – down from a $450,000 surplus in the previous year – comes months after fears of an impending $200 million budget cut. These were seemingly allayed by the Government’s $1.5 billion boost to hospitals in August.
On 15 November, a Monash Health spokesperson said the 2023-’24 deficit “will not impact or compromise the excellent, compassionate and timely care we strive to provide our community”.
Monash had incurred higher operating costs, including a new hospital, legacy Covid safety measures and unprecedented patient demand with increased acute and complex presentations, the spokesperson said.
“Monash Health has worked closely with the Department of Health to ensure the 2024-25 budget will deliver the care our community needs.”
According to the Government, health systems were still under “significant pressure” since Covid At the same time, health costs were up nearly 10 per cent a year for the past five years.
It was now implementing a “new, fairer funding model to reset hospital budgets”, with a record $21 billion-plus funding, a spokesperson said.
“We’ll always back our hardworking doctors, paramedics and nurses and midwives, and since coming to Government we’ve grown our public health workforce by 50 per cent.
“Only Labor invests in our health system. The only political party that cuts and closes hospitals is the Liberal Party.”
The operating deficit had no impact on a health service’s ability to deliver care, according to the Government.
As part of the August reforms, the Government also announced a recommended voluntary merger of Monash Health and the West Gippsland Health Group.
Opposition health spokeperson Georgie Crozier said Victoria’s 68 health services recorded a net deficit of more than $1 billion in 2023-’24.
“These reports reveal the extent of Labor’s one-billion-dollar hospital cash crisis.
“The Allan Labor Government can find tens of billions of dollars for a new train line from Cheltenham to Box Hill but cannot find the money to pay doctors and nurses on time – their priorities are all wrong.
“Labor’s financial mismanagement and record debt is starving funding from Victoria’s hospitals and means poorer health outcomes for Victorian patients.”
