MP proposes $1 billion regional health fund

Federal Member for Indi Helen Haines has called on the government to establish a $1 billion rural hospital fund to finance essential health infrastructure in small towns like Benalla

Dr Haines said the fund could assist with capital works, equipment, and planning approvals.

“From Mansfield to Bright and Benalla we’ve got small rural health services across Indi who barely get a look-in when it comes to hospital infrastructure funding,” Dr Haines said.

“In regional and rural Australia, the health needs of our communities are growing, but our health services are being left to fall behind.

“As our communities grow and age, we are faced with outdated, ageing and often dangerous infrastructure. It was bad before the pandemic, but the last two years have shown just how big the problem is.”

Dr Haines said existing funding arrangements for health infrastructure are not working for small rural health services to get the funding they need.

“Mansfield District Hospital’s Master Plan was submitted to the Victorian Health Building Authority (more than) two years ago, yet there has been no movement on funding since then.

“They shouldn’t have to go cap-in-hand to the Minister’s office to push for ad-hoc funding.

“They shouldn’t have to hope that a special deal will appear around election time.

“Funding should be significant, ongoing, and transparent.”

Federal Regional Health Minister Dr David Gillespie said that as a former regional doctor and now the Minister, he was always looking to create or invest further in programs and initiatives that would provide more sustainable healthcare to regional, rural and remote patients, and agreed with Dr Haines that attracting health workers was a priority.

“To attract and retain more health professionals and doctors in the country, our $550 million Stronger Rural Health Strategy, is delivering more regional doctors and providing additional country training opportunities for our next generation of health professionals and GPs,” Dr Gillespie said.

“In addition to the $1.25 billion Community Health and Hospitals Program, the Federal... Government is investing around $6.1 billion over five years from 2020-21 in funding to the states, including Victoria, to support services provided by small, rural and regional hospitals.

“As a doctor I know access to primary care is chiefly important and while I have a laser light focus on improving access to GPs and allied health professionals in Indi, the Victorian (state) Government seems to have shirked its responsibility to the people of Mansfield.”

The Federal Government has funded rural hospitals through similar projects in the past, but these haven’t been ongoing, making it hard for health services to apply for and plan for funding.

A one-off $1.25 billion Community Health and Hospital Fund was administered right after the last election in 2019.

The Australian National Audit Office is considering an audit of the program, focusing on whether value for money was achieved and the selection and allocation of funds.

Dr Haines said since 2019, direct federal funding has all but disappeared except for small projects through the Building Better Regions Fund.

“Only around two per cent of that fund has gone toward rural hospital infrastructure over the lifetime of the fund,” Dr Haines said.

“Rural health services often include hospitals, residential aged care and other primary health care facilities.

“The Federal Government has a role to play in funding these rural health services, and they have done so before.”