Eastern Health: Lifeline for hospitals

DESPITE the federal government restoring hospital spending, it is unclear what services and how many beds will reopen at Eastern Health.

Prime Minister Julia Gillard last week announced that $107 million would be returned to Victoria's hospitals, after withdrawing the money earlier this year because of revised population forecasts.

However, in a break from custom, the money will be paid directly to the hospital providers, bypassing the state government.

Eastern Health chief executive Alan Lilly said the organisation needed time to process the announcement.

"This is an unprecedented situation for our organisation. We will review the changes that have been made and assess how to move forward in the best interests of our staff and the community," he said.

Eastern Health was forced to close beds, suspend elective surgeries and cut mental health and palliative care programs in January in an attempt to claw back more than $8 million after the cuts were announced. Maroondah Hospital recently announced it would close its diabetes education unit, and the future of that program still remains uncertain.

Health funding has been at the centre of an ongoing stoush between the state and federal governments.

Federal Health Minister Tanya Plibersek announced the boost in a visit to south-east Melbourne hospitals last week. She has previously said the funding problems were due to cuts of $616 million by the state government.

Smartphone
Tablet - Narrow
Tablet - Wide
Desktop