Reduced state funds for Warragul hospital

State government funding projections for acute activity at West Gippsland Hospital this year will be less than the previous year, despite a $10 million project to expand the hospital’s capacity.

Eight short stay units and a third theatre were officially opened at the hospital last month.

But, reduced state government WIES funding for the 2019-20 year means the new infrastructure will not be used to its capacity.

WIES is a weighted funding model that funds a patient from the beginning of their treatment to when they leave hospital.

Funding is allocated to hospitals each year by the state government based on projected acute activity including elective surgery and emergency department admissions.

In 2018-19, the Health Department’s statement of priorities showed West Gippsland Hospital would be funded for 10,324 WIES.

The department’s statement of priorities for 2019-20 shows a decreased projection of 175 WIES to 10,149.

Member for Narracan Gary Blackwood said it was “crazy” that the government had spent $10 million on a third theatre and eight bed short stay unit and then reduced the hospital’s activity funding.

Mr Blackwood said WIES funding was allocated based on activity.

He said the statement of priorities showed an anticipated decrease in activity for the current year so therefore reduced funding.

“The funding is done in advance but the government isn’t paying attention to our growth.

“They have funded the infrastructure but they aren’t funding the capacity to deliver the extra services,” he said.

Mr Blackwood said the third theatre was expected to run at only 50 per cent capacity and only four of the eight short stay beds would be open.

He said he did not understand how the government could recognise on one hand the population growth and demand on medical services justified $10 million worth of new infrastructure but it did not allocate funding to allow the beds to be filled.

In parliament last month Mr Blackwood called on the government to immediately reverse the cuts to activity funding for this year and allocate enough extra WEIS to allow the hospital to meet growth in demand.

“You have a hospital under enormous pressure from population growth. You expanded the facility to help increase access to more services, but you reduced the funding that would cover the cost of those services,” he told parliament.

At the opening of the short stay units and third theatre last month, Member for Eastern Victoria Harriet Shing denied operational funding did not allow the new facilities to be used.

She said the short stay units would be “scaled up over time” as demand increased and funding was allocated to meet the demand.