Funding for hospitals in Geelong form part of funding dispute between State and Federal Governments

PREMIER Daniel Andrews has accused the Prime Minister of ripping $2.1 billion away from Victorian hospitals at the expense of Geelong families.

A hospital funding dispute is underway between State and Federal politicians.

PREMIER Daniel Andrews has accused the Prime Minister of ripping $2.1 billion away from Victorian hospitals at the expense of Geelong families.

But, the Federal Health Minister has rejected the claim, saying hospital funding will continue to grow at record levels.

The State Government had taken issue with the proposed Heads of Agreement for the National Health Reform Agreement 2020/21 to 2024/25 put forward by the Federal Government.

The proposal would cap the growth for hospital funding at 6.5 per cent, and would leave the Commonwealth contribution rate at 45 per cent — rather than the requested 50 per cent.

The cap is below the 50 per cent Commonwealth funding offered by the most recent Labor governments, but it is more generous than the Abbott government’s cuts in the 2014 budget.

“The Federal Liberal Government have already ripped billions of dollars away from our hospitals, and now they want to take another $2.1 billion,” state Health Minister Jill Hennessy said.

“Instead of playing politics from his waterside mansion in Sydney — Malcolm Turnbull needs to speak to the Victorian patients who will bear the brunt of these health cuts.”

Premier Daniel Andrews said the “tricky accountancy” would hit those that needed help the most.

“It’ll mean Geelong families will spend longer waiting in the Emergency Department.”

A spokesman for federal Health Minister Greg Hunt hit back at the accusations.

“We reject their claims. They are wrong,” spokesman John O’Doherty said.

“Commonwealth funding to Victorian hospitals is growing from $3.3 billion in Labor’s last year to $5.7 billion in 2020-21, and will continue to climb to record levels each and every year.”

The spokesman said the proposed agreement would see record hospital funding in every state, every year.

“For Victoria this new deal would see more than one million additional hospital services delivered to Victorian patients each and every year,” he said.

The funding proposal will be presented to The Council of Australian Governments (COAG) — the peak intergovernmental forum in Australia — on Friday.

Originally published as Funding for hospitals in Geelong form part of funding dispute between State and Federal Governments