Mercy Health to get back its ‘lost’ $3m

ABOUT $3 million will be returned to Mercy Public Health’s budget after the federal government reversed cuts to Victoria’s health funding.

The government had planned to cut the state’s funding by $107 million, saying latest census data had shown a drop in Victoria’s population. It maintained the state government was using the reduction to cover up its own cuts to Victoria’s health budget.

The state government then ordered hospitals to cut their budgets before June 30, with Mercy Public Health told its funding would be reduced by $3 million.

As reported by the Weekly, Mercy Public Health announced last week it would be forced to close eight medical and four surgical beds, along with three special care nursery cots at Werribee. It also planned to delay 357 elective surgeries. However, the federal government announced last week it would reinstate the funding and give it directly to local health networks, instead of the state government.

Mercy Public Health executive director Linda Mellors welcomed the reinstated funding but said she did not know when or how it would be returned to Werribee Mercy.

She said the hospital also did not know what impact the returned money would have on budgets in future years.

Prime Minister and Lalor MP Julia Gillard said she was reinstating the $107 million so Wyndham residents could access the health care they deserved. She said the state government had mismanaged the health system, causing waiting lists and ambulance response times to blow out, maintaining the state government was to blame for the funding decrease.

Premier Ted Baillieu said he did not accept the federal government’s reasons for cutting health funding and was concerned that budgets could be reduced in future year. “The Prime Minister’s announcement only applies until June 30 and leaves in place a further $368 million in cuts over three years, which will again impact significantly on Victoria’s hospitals and patients from July 1 this year.”