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Federal Government's hospital funding backflip

Posted by: MIchael James | 21 February, 2013 - 7:12 AM

Victorian Premier Ted Baillieu says the Federal Government's decision to reverse hospital funding cuts of $107-million is 'a short term political fix'.

The Gillard government bowed to pressure and will reinstate the money after jobs were axed, beds closed and elective surgeries cancelled.

This morning, Neil Mitchell was handed a letter Prime Minister Gillard sent to Premier Baillieu which he says shows the feud is far from over.

"The letter to from the Prime Minister to the state government is aggressive, confrontational, ugly - it accuses Victoria of playing games, of running a political campaign around people's health" he said.

PLAY: Premier Ted Baillieu with Neil Mitchell

Premier Baillieu described the letter as extraordinary: "I've never seen anything like this. It's extraordinary and I'd simply describe it as unbecoming."

DOWNLOAD: Read Prime Minister Gillard's letter in full


Federal Health Minister Tanya Plibersek announced last night she would restore the money for the current financial year, which will be paid directly to hospital administrators.

"The cash injection will be paid directly to Local Hospital Networks, which will distribute the money to ailing Victorian hospitals, and will not pass through the hands of the Baillieu government which has proven itself to be a cruel and incompetent manager of the Victorian health system," Ms Plibersek said.

PLAY: Federal Health Minister Tanya Plibersek with Neil Mitchell

PLAY: The Chairman of Melbourne Health Robert Doyle says it will take weeks for the hospital to return to normal

“We believe we have an obligation to ensure Victorians are given the best possible health care. We will not stand by and allow Premier Baillieu's politicking to hurt patients. For two years Premier Baillieu's blatant disregard for the welfare of Victorian patients has seen beds close, elective surgery waiting lists blow out and standards of care decline."

The decision to restore the funds won't come without pain with the $55-million promised to state and territories as reward for productivity gains being revoked.

LISTEN HERE: Prof Stephen Duckett, Director of the Health Program at the Grattan Institute, speaks with Ross and John

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Blog comments Your Say

  • Ian,got rid of WORKCHOICES .....

    Gazza Tuesday 26 February, 2013 - 7:49 PM
  • Why dont we take the money out of the pollies super and give to the hospitals Gee i can hear the cries already what a bunch of pollies we have here jail the lot of them

    barry Monday 25 February, 2013 - 8:05 PM
  • Is this a case of male supremacy trying it on, Ted B. bullying in aggressive manner against the PM, who never gets credit for doing it the calm, dignified, (female) way. No, she has to be assertive (bordering on aggressive) to make her point. I do not believe she would be playing games with this sort of people money, and she has the health "formula" worked out to back her up. Well done, PM.

    Rod Fairgofourall Saturday 23 February, 2013 - 3:27 PM
  • we should be able to get phlibber fibber and useless thats tanya julia and ted charged for the possible death of people who my be very sick and then watch them act

    barry Friday 22 February, 2013 - 6:41 PM
  • @ mylene, so does ":p"

    David T. Friday 22 February, 2013 - 5:14 PM

    IAN Friday 22 February, 2013 - 4:40 PM

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