Hospital funding cuts: Emergency room, maternity services on chopping block at Mildura hospital

A major Victorian regional hospital could shut key services, forcing thousands of patients to travel up to 400km for medical care.

Victoria’s health minister has rushed to allay fears a major regional hospital will be forced to close its emergency department in keeping with “extreme” budget cuts.

Mary Anne Thomas said the Mildura community “can be assured” closure of emergency departments, maternity, pediatric or Aboriginal health services is “unacceptable” and will not happen under the Allan Government.

The Weekly Times reported on Friday, that Mildura Base Public Hospital in north west Victoria could resort to shutting its emergency department, among other measures, as it faces pressure from the Allan Government to find millions in savings.

The move could see tens of thousands of patients forced to seek urgent medical care up to 400km away.

The self-described “Extreme+” measures were detailed in leaked documents seen by The Weekly Times, formulated in response to demands from the government that hospitals deliver ‘break even’ budget action plans for the 2024-25 financial year.

The Weekly Times submitted a number questions to Ms Thomas, including could she guarantee Mildura and other regional hospitals would not have to close emergency departments, should the demand hospitals create ‘break even’ budgets be abandoned, and how the government intended to support budget cuts without reducing key services.

Ms Thomas did not provide detail on how further cuts would be achieved, instead stating:

“Final budgets for health services will be set soon and discussions are ongoing,” Ms Thomas said.

“In the meantime, we will continue to support hospitals deliver the world-class frontline care that Victorians expect.”

The leaked documents state the MBPH board agreed to update its action plan – after the Department of Health rejected the first plan as “insufficient” – to include a number of additional cost-saving measures, including:

CLOSING the hospital’s emergency department;

STOPPING maternity and pediatric services;

CLOSING the Aboriginal Health Unit; and

SHUTTING one theatre/intensive care unit.

MBPH declined to comment.

The document states the updated plan would emphasise that MBPH “don’t support these initiatives but have been added at the request of DH’s directive to achieve a net even position”.

The new submission would also emphasise “the impact on patients and staff, namely the issue that the closest service is 400km away,” and state that “the risks associated with these initiatives as Extreme+, due to the requirement for ambulances/patients to (be) diverted to alternate locations, impacts of delayed care and the inequity this creates”.

The Weekly Times understands the updated plan has been submitted to the department, and comes on top of an original $12.3 million of proposed savings associated with a number of measures, including reduction of full time equivalent staff.

Mildura Base Public Hospital could resort to closing its emergency department as a cost-saving measure, according to leaked documents. Picture: Stuart Kavanagh.

The state government had asked hospitals across Victoria to develop budget action plans by June 30 that would deliver a break even result this financial year.

An email from the Department of Health on July 3 stated MBPH’s initial action plan was “insufficient” to achieve this result, and further actions should be put forward by July 10.

The email states making additional proposals does not mean they will be approved but “will provide the government with a greater understanding of the extent of actions required” to break even this financial year.

The department must approve hospitals’ budget action plans before any proposals are enacted, and hospitals have been directed to take no action at this stage.

Mildura MP Jade Benham called the proposed cuts a “brutal reality check” for regional health services in Victoria.

“This will cost lives,” Ms Benham said.

“We have been lied to, and to send patients, pregnant women and ambulances 400km is just not practical.

“The Allan Labor Government can’t manage money, can’t manage the health system and its people in regional centres like Mildura that are paying the price.”

The hospital has a catchment of about 87,000 people, and is the major public referral health service for the Northern Mallee subregion within Victoria’s Loddon Mallee region, NSW’s far west, and South Australia’s Riverland.