COLAC AREA HEALTH’s chief says he has received confirmation it will face almost $200,000 in Federal Government funding cuts to the service.
But Corangamite MP Sarah Henderson has denied any cuts, claiming CAH should not have expected the funding despite its previous approval.
The Colac Herald reported on Wednesday that Labor candidate Libby Coker was concerned that a Federal Government decision would cut funding to Victoria’s health services.
Colac Area Health chief executive officer Geoff Iles told the Herald last week that he was yet to receive advice about cuts to health funding.
But Mr Iles said he received advice on Tuesday night that there would be $199,000 cut from the health service.
He said funding reforms from the previous Labor Government established a “purchasing authority” with an administrator who decided the distribution of funds to State Governments.
Mr Iles said the administrator had agreed to Victoria’s counting method, allowing for $73 million in federal funding, but then reversed that decision causing the shortfall.
“The board does have a set of principles that addresses these things and it will make a determination on how they are going to deal with that and they’ll tell the minister and the secretary what their plans are,” he said.
Mr Iles said the board would discuss their funding options at a board meeting on February 29.
Corangamite MP Sarah Henderson told the Colac Herald this week that Victoria receiving $73 million would reduce growth funding to other States and Territories.
But Mr Iles said that claim was “a bit unfair” and the issue was “a lot more complex than that”.
Ms Coker raised concerns about the funding cuts with the Colac Herald last week stating that the cuts would equal cuts to 497 emergency department presentations or 32 elective surgeries.
She said Victoria would also lose another $36.6 million every year into the future.