Annual reports recently released in the Victorian parliament show Goulburn Valley Health was among the top 10 hospitals with the biggest deficits in the state for the 2023-24 financial year, and had the worst reported cash reserves.
According to 65 reports tabled in state parliament, more than 40 health services around the state were running at a deficit for the 2023-24 reporting period.
The biggest deficit belonged to Monash Health, with a loss of $328.97 million.
Goulburn Valley Health’s annual report showed the Shepparton-based hospital with a shortfall of $38.38 million for 2023-24.
“GV Health was not able to deliver on its accountabilities in 2023-24 within its agreed budget,” the report states.
Additionally, the report showed the hospital had negative-seven days of cash available to it during the most recent financial year, the worst reported reserves in the state.
The goal for most institutions is to have at least 14 days of cash available to pay bills, measured on the final day of each month.
GV Health chief executive Matt Sharp said the institution reported operating surpluses in each of the three financial years prior to this one.
“However, very late in the 2023-24 financial year, and due to circumstances beyond our control, GV Health was required to return a significant amount of funding to central reserves. This did not impact services for our community but did impact our financial results,” Mr Sharp said.
“Our goal has always been to leverage our strong financial management and robust balance sheet for the benefit of our local community, enabling us to continue to improve our services and deliver the highest quality care in an unpredictable environment.
“GV Health remains committed to prudent financial management as a key pillar in our Strategic Plan, and a firm foundation for sustainable, high-quality care for people in our community and our region.”
Mr Sharp said the hospital continued to work with the Department of Health to ensure the health service had “enough operating funding and cash to meet its financial obligations throughout the year”.
The hospital’s annual report laid some portion of blame for the deficit on a reduction in operating revenue and increasing costs of replacing vacant positions with temporary contract staff.
More than 60 annual reports were tabled in parliament this month, with several others from health institutions around the state currently delayed.
Taken together, the reports paint a grim picture of the financial health of health services in the state, with many operating in the red.
Hospitals reported a combined deficit of more than $1 billion.
“Victorians continue to pay the price for Labor’s financial mismanagement as the release last week of 68 health service annual reports showed the dire state of their finances,” Shadow Minister for Health Georgie Crozier said.
“Labor’s financial mismanagement and record debt is starving funding from Victoria’s hospitals and means poorer health outcomes for Victorian patients.”
A state government spokesperson said the government was working with health services to ensure every dollar was spent on delivering the frontline care Victorians needed.
“Health systems globally remain under significant pressure following the one-in-100-year pandemic — it’s why we provided record funding of more than $21 billion in 2024-25, and implemented a new, fairer funding model to reset hospital budgets to meet demand,” the spokesperson said.
“We’ll always back our hard-working doctors, paramedics and nurses and midwives, and since coming to government we’ve grown our public health workforce by 50 per cent.”
According to the government, operating deficits would not result in compromised patient care, and funding for health services has been reformed for 2024-25.
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