Albury Wodonga Health must find ways to save $3 million in its 2024-25 budget, according to leaked internal emails.
Subscribe now for unlimited access.
or signup to continue reading
However, Benambra MP Bill Tilley said that considering the financial loss AWH suffered last year, the hospital will actually need to save more than $25 million to break even.
The email, from AWH chief executive Bill Appleby, comes after the Victorian government announced budget cuts for hospitals across the state, following previous measures that already forced them to tighten their belts.
ACM reported in February that Albury Wodonga Health was $22.24 million in the red in the first quarter of 2023-24.
"I am writing to inform you about significant updates following the release of the 2024-25 Victorian budget," the email from Mr Appleby to staff says.
"While a substantial portion of funding has been allocated to the healthcare sector, it is also crucial to acknowledge the fiscal challenges the sector faces, necessitating a renewed emphasis on financial discipline and responsibility across our organisation."
"Immediate cost containment measures" include no wage increases and restrictions on hiring locums.
The email outlined the following guidelines:
- The hospital cannot increase full time equivalent (FTE) positions unless they replace "agency spend".
- No new positions are to be recruited other than to "replace current FTE or agency spend".
- Recruitment should be like-for-like in terms of current hours and classifications.
The Border Mail contacted AWH for comment on Monday, June 17, and asked the following questions:
- How much funding has the Victorian government cut from Albury Wodonga Health?
- Where will the $3 million in savings come from?
- There's a cap on your budget each month, so what happens if you approach/blow your monthly budget?
- There are restrictions on hiring locums, so what if you can't get a doctor to do a procedure and the only option is a locum?
- How do you plan to stop wage increases within a decreasing budget without axing jobs?
- Will the new budget force you to spend bequest and fundraising money on day-to-day operations?
The enquiry was later deferred by AWH's communications team to the Victorian Health Department on Tuesday, June 18. The Victorian Health Department has been contacted for comment by The Border Mail.
'It's unachievable'
The Health Department sent out summaries of their "model budgets" for the 2024-25 financial year on June 12.
Many rural services had their funding slashed by millions of dollars, while others faced cuts of just $120,000.
The budget cuts are the third successive financial assault on health services in a matter of months.
The government has already forced services to make significant administrative cuts through mandatory financial management improvement plans, and more recently imposed strict cost containment measures with an effective hiring freeze.
Mr Tilley said the budget cuts will have an impact on the quality of care at Victorian hospitals.
"If we accept, as reported, that Albury Wodonga Health was more than ($22 million) in deficit last financial year, and this Labor Government is slicing off another $3 million - is that not a total of ($25 million) being cut from our health services?" he said.
"What will happen to the health needs of the 300,000 people who rely on Albury Wodonga Health.
"This story is being repeated at hospitals across the state - unrealistic budget cuts, demands for improved productivity but no extra staff and no extra cash in the budget to cover the nurse EBAs.
"It's unachievable ... this can't be done but Labor will use it to justify widespread amalgamations and call them cost efficiencies."