Andrews government facing $150m shortfall in Heart Hospital funding

UPDATE: THE Andrews government hopes the Federal government will fill the potential $150 million black hole needed to build the Victorian Heart Hospital.

An artist impression of what the new Monash Heart hospital will look like.

PREMIER Daniel Andrews is confident the federal government will step up to fill a potential $150 million black hole to build the Victorian Heart Hospital, after being accused of bungling funding for the project.

Despite needing to raise up to $200 million from the federal ­government and private backers, sources close to the project claim the state government is yet to secure ­financial support.

Federal Health Minister Greg Hunt’s office this week told the Herald Sun the Turnbull government was not planning to support the Victorian Heart Hospital, having only been ­approached four weeks ago — nine months after the Victorian ­government publicly announced its funding aim.

The Andrews government has so far provided its $150 million share, while Monash ­University has pledged from $50-$70 million as well as land at Clayton, leaving a funding shortfall of about $150 million.

Related: Labor backs plan to build Australia-first hospital

Mr Andrews said on Tuesday discussions had been going on for months before the letter was sent to the federal government.

“I think there’s been discussions between the governments, certainly at an officials level, for months and months,” Mr Andrews said.

“So when a letter got sent — I don’t think it’s fair to say that was the only engagement. There’s been lots of engagement.

“This is a well known project and the fact that we’ve provided our money, the university has committed $50 to $70 million on top of that, the philanthropic community, in a great act of kindness, are prepared to give many tens of millions of dollars, the project is well understood and well known and that’s because it’s a standout project.

Federal Health Minister Greg Hunt. Picture: AAP

“I would be really confident the Commonwealth would come on board with this because it’s a nationally significant project, it’s one of its kind.”

Mr Andrews said he wanted to be “positive” with the federal government and “this is not something we should argue about”.

“We’re very keen to have the Commonwealth involved and let’s not be wholly negative about this,” he said.

“I think the best thing to do is to wait and see what the federal government’s answer is over time.”

Sources believed the Andrews government was poised to commit an additional $100 million to cover the shortfall, however it now appears unlikely next month’s state Budget will contain any money for the centre.

A spokeswoman for Victorian Health Minister Jill Hennessy said the state government was keeping its promise to deliver the Heart Hospital, having already provided its funding and undertaken planning works.

But Mr Hunt’s spokesman, Ben Wick, said: “They promised money they never had and never even bothered to ask for.”

Australia’s first stand-alone heart hospital is planned to be a 195-bed, world-leading centre capable of competing with the best international cardiac hospitals to attract high numbers of wealthy medical tourists.

Premier Daniel Andrews. Picture: Lawrence Pinder

Rather than partnering with a private hospital operator, the Herald Sun understands the Andrews government hopes to win the support of national and international philanthropists, as well as the federal government.

This would allow all money generated though medical tourism to be poured back into treating Victorian patients and funding research.

It is understood negotiations with several philanthropic organisations have been stepped up following the recent completion of a full business case for the project.

In a letter seen by the Herald Sun, Victorian Health Minister Jill Hennessy last month urged Mr Hunt to “consider prioritising investment” in the Heart Hospital following the development of the business case.

But Mr Hunt’s department instead accused the Andrews government of making false promises and misleading the public with their intentions for the project.

“Victorians deserve more than a flashy announcement with no detail to deliver it,” Mr Wick said.

State Opposition health spokeswoman Mary Wooldridge said Premier Daniel Andrews had failed to attract financial partners because of a flawed approach.

“This go-at-it alone attitude is all about Daniel Andrews putting politics ahead of ­patients,” she said.

When asked for an update on funding for the hospital, Monash University released a statement saying it was “working productively” with Monash Health and the Victorian government on planning for the “flagship clinical, research and education facility”.

- with Anthony Galloway

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