Health funding stoush

State claims of hospital cuts are lies, says Hunt

THE Federal Government has hit back at claims Barwon Health will be short-changed almost $100 million through a proposed national hospitals funding agreement.

A spokesman for Federal Health Minister Greg Hunt accused the State Government of lying and scaremongering through claims the proposed National Health Reform Agreement cut $2.1 billion from hospital funding for Victoria.

The proposed agreement would cap the growth for hospital funding at 6.5 per cent, and leave the Commonwealth contribution rate at 45 per cent.

“(Premier Daniel Andrews) is not only lying but he’s trying to scaremonger vulnerable cancer patients,” the spokesman said. “It’s a low act.”

“Under the new deal offered by the Turnbull Government, Victorian hospital funding would increase from $24 billion in the five years to 2019-20, to more than $31 billion in the five years to 2024-25.”

On Sunday, Victorian Health Minister Jill Hennessy said the proposed agreement would mean $2.1 billion less hospital funding for Victoria — short changing Barwon Health $99.6 million proportionally.

“Our new analysis show that every single hospital across our state stands to miss out — and it’s Victorians who will bear the brunt of these cuts,” Ms Hennessy said.

Premier Daniel Andrews last week warned the National Health Reform Agreement’s 6.5 per cent cap would not keep up with hospital funding needs, and the 45 per cent contribution rate was well below its 50 per cent request.

Health Minister Greg Hunt’s spokesman said the Victorian Premier needed to explain why Commonwealth funding for the state was growing faster than his own contribution.

“Between 2013-14 and 2016-17 the Commonwealth increased funding to Victorian hospitals by 36.4 per cent, while the Victorian Labor Government only increased its funding by 13.9 per cent,” the spokesman said.

The funding proposal was presented to The Council of Australian Governments this month.

New South Wales and Western Australia have signed up to the package, while Victoria and the remaining states are holding out for a better deal.