Rural healthcare providers face having to slash opening hours and scale back vital services in response to looming cost increases as the state government seeks to rein in health spending.
Health service operators and rural advocates fear residents may forgo or delay essential medical treatment if local services are unavailable.
Balmoral Bush Nursing Centre president Tom Silcock says his service is facing a major budget shortfall.Credit: Nicole Cleary
Some rural healthcare providers say they had already been under significant financial pressure, as their budgets remain the same while costs balloon.
In western Victoria, Balmoral Bush Nursing Centre president Tom Silcock said key services were at risk unless the Allan government increased his centre’s funding.
The health centre provides nursing, palliative care, post-cancer treatment and urgent care. Its ambulance is mostly staffed by volunteers.
Silcock said his centre was now facing a $200,000 funding shortfall with increased costs weighing heavily on the service’s budget.
“We cannot operate with a major deficit,” he said. “That’s just not sustainable.”
Last financial year, the service posted operating revenue of just over $1 million with a $16,000 deficit. The state government delivered almost 70 per cent of its income.
The service provided about 1750 clinical appointments in 2023. Silcock said the centre may have to close one day a week unless the state government stumps up more funding.
“We’re being asked to cut essential services. That’s almost an impossible request,” he said.
Bush nursing centres operate on a different funding model to the public hospitals, with some money coming from the state while the rest can come from a range of sources, including surrounding communities. The government insists it has not cut funding to bush nursing centres.
“Bush nursing services like Balmoral BNC are standalone, independent services, however they do receive part of their funding from the Victorian government via our Community Health and Small Rural Health Grants programs – this funding has not been cut,” a state government spokesperson said on Thursday.
The state government has, however, separately asked hospitals across the state to find their own cost savings, prompting hiring freezes in two large metropolitan hospitals. One health service warned staff to turn off lights when they leave a room to save money, while others are cutting mental health services.
The Age revealed on Thursday that former premier Daniel Andrews’ 2022 policy to introduce 29 primary care clinics to take the pressure off hospital emergency departments is also under pressure, with funding discussions under way.
Balmoral Bush Nursing Centre acting services manager Lisa McClure. The centre is facing a significant budget shortfall. Credit: Nicole Cleary
Federation University health expert Professor Wendy Cross said the budget cuts might mean greater reliance on telehealth in rural areas.
“It also might mean people will resort to the internet to do some self diagnosing which is dangerous,” she said.
One rural hospital executive, speaking anonymously for fear of repercussions from the state government, said some country health providers could lose between 20 per cent and 30 per cent of state government funding.
“It is a scorched-earth policy,” he said.
Health service budget shortfalls have raised fears that some centres may have to restrict their opening hours. Credit: Nicole Cleary
The executive said rural healthcare providers and hospitals would have to erode their cash reserves and potentially go into deficit and cut services to stay afloat.
He said some people may be unable to travel long distances to the nearest major hospital if they lived in remote areas. “What it can mean is that people defer or completely put off treatment.”
Rural Doctors Association of Victoria president Louise Manning said she had heard of at least one small country healthcare provider that had been asked to find $1 million in savings.
“In a small service that’s a lot of money,” Manning said. “They’re concerned about how they’re going to maintain their current services.”
Despite widely reported concerns about cost-saving measures, a spokeswoman for the Victorian government insisted it was investing a “record” $20 billion in hospitals this year and an additional $8.8 billion over multiple years in this year’s budget.
However, opposition health spokeswoman Georgie Crozier said the cuts were having a detrimental impact on vital health services across Victoria.
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