Source : the age
Hospitals across Victoria will receive an extra $9.3 billion to cover operational costs over the next four years as the Allan government seeks to avoid another damaging feud with the sector.
As part of her first budget on Tuesday, Treasurer Jaclyn Symes will announce that Victoria will spend an extra $11.1 billion on health over the forward estimates as the state opens new facilities, expands clinics and seeks to meet the rapidly growing funding needs of health services.
The state budget includes money to open the new Footscray Hospital.Credit: Joe Armao
Central to the funding announcement is an extra $9.3 billion multi-year commitment for hospital operational budgets to “provide the certainty to plan for the future”.
Victoria will hope the deal heads off a repeat of last year’s protracted funding dispute with hospitals that ultimately led to the government having to pour in more cash.
In a similar pledge to this year’s budget announcement, the 2024-25 budget committed an extra $8.8 billion to the sector but sought new funding arrangements that meant hospitals would not have their budgets topped up if they fell into the red.
But the government was forced to back down as the sector warned of hiring freezes and cuts to vital services because of the decision, ultimately adding another $1.5 billion to this year’s total hospital spend.
By announcing another significant boost to operational funding, the government will seek to avoid a similar backlash.
In the 2025-26 financial year alone, spending on the state’s health system will rise to $31 billion. The 2024-25 budget allocated $27.8 billion to the health department, but this did not include the $1.5 billion added after the hospital stoush.
“I will always fight for a strong public health system,” Premier Jacinta Allan said.
“That’s why I’m focused on investing in our world-class health system and backing our doctors, nurses, midwives, paramedics and all other frontline health workers – so Victorians can get the care they need, when and where they need it.”
Victoria’s budget also includes $643.3 million to open and run nine hospitals which are either new or upgraded, including Footscray Hospital and the expanded Frankston Hospital.
Jacinta Allan and Jaclyn Symes are increasing spending on the health sector.Credit: Justin McManus
An extra $48.2 million will also go towards state-run urgent-care clinics and growing Victoria’s community pharmacy program.
The statewide pilot of community pharmacists, which allows access to some treatments without visiting a GP, will be made permanent and expanded. Consultations will be free.
Pharmacists will be able to treat more conditions such as allergies, nausea and high blood pressure. Currently, they can treat shingles, mild psoriasis, urinary tract infections and provide medications such as oral contraceptives.
Victoria has 29 urgent-care clinics which the Allan government says have received more than 800,000 visits.
“We’re focused on what matters most – opening new hospitals, delivering better care and backing our health workforce – because free, accessible and lifesaving care is what every Victorian deserves,” Health Minister Mary-Anne Thomas said.
Speaking on Monday, Symes said increased revenue from the GST could have allowed Victoria to post a surplus bigger than the $600 million to be confirmed in the budget.
But she said the government instead chose to keep investing in services that the public expected them to support.
“We are investing in health, mental health, education, transport – all of the things that Victorians want,” Symes said.
“We’re also offering practical cost-of-living measures, as well as delivering a surplus, which is what we promised to do.
“This is about ensuring that we are creating jobs, stabilising our debt, growing our economy and demonstrating that we can service that debt whilst delivering the infrastructure and services that Victorians need.”
The size of the state’s debt will continue to grow to an expected $187 billion by 2028, but the government says the share of debt in the overall economy will decline in future budgets.
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