Victorian health services run deficits up to $320m

Victorian hospitals are running deficits of up to $321m as they struggle to control costs and grapple with increased demand.

Victorian Health Minister Mary-Anne Thomas and Premier Jacinta Allan. Picture: Diego Fedele/NewsWire

Victorian health services are running deficits of up to $321m as they struggle to control costs and grapple with increased demand.

Data from 68 of the state hospitals’ 2023-24 reports has revealed shortfalls totalling more than $1bn, according to opposition calculations.

Monash Health recorded the largest deficit at $321,278,000, followed by Northern Health at $115,791,000, Western Health at $104,509,000 and Eastern Health at $100,043,000.

Austin Health had a deficit of $71,915,000, Peninsula Health of $59,122,000, Albury Wodonga Health of $52,419,000 and Grampians Health of $46,870,000.

The Peter MacCallum Cancer Centre had 0.48 days of available cash in the bank, a significant way off from its target of 14 days, Peninsula Health had no days of available cash, and some services had negative days cash on hand available.

Monash Health chief executive Eugine Yafele and board chair Dipak Sanghvi said the year “has not been without its challenges … We have navigated a complex landscape marked by ongoing public health concerns, a global workforce shortage, and rising pressures on healthcare infrastructure. Financial sustainability is deeply linked to our ability to maintain excellence in care. Living within our means is critical to continuing to deliver care effectively,” they said in the report.

Victorian Health Minister Mary-Anne Thomas. Picture: Kelly Barnes

Victorian Health Minister Mary-Anne Thomas said health services were being worked with closely to ensure investment from the government was being spent “wisely”. “The performance of our system is one I’m enormously proud of. However, there is always more work to do,” she said on Thursday.

“It’s why we’ve worked, now that we’re out of the emergency response to Covid, with our health service system to reset the price we pay to hospitals for every episode of care.

“The important issue here is that operating deficits have had no impact on delivery of patient care.”

Ms Thomas said Victoria had delivered 209,000 planned surgeries in the last financial year, and every category one emergency department presentation was seen immediately.

Ambulance Victoria’s annual report was dumped among documents tabled in parliament, revealing an operating loss of $26m.

Peter MacCallum Cancer Centre.

The emergency service owed some of its biggest challenges to the increased demand on the health system, and noted that negotiations for a new enterprise agreement for its operational workforce “took far longer than desired”.

Opposition Leader John Pesutto said the health system was “financially broken” under Labor.

“Victoria’s health system is in a state of crisis … the cumulative operating losses across 68 health services exceeds $1bn. This means Victorians are not getting the healthcare they deserve,” he said.