Victoria's peak body for public health services is calling on the government to tie funding boosts to wage rises and foot the bill for soaring worker insurance scheme premiums.
In its submission for the 2024/25 state budget, the Victorian Healthcare Association acknowledged the parlous finances confronting the Allan Labor government after the COVID-19 pandemic.
Nevertheless, the association which represents 113 members within the sector stressed the need for the government to step in to fix the structural deficit facing Victoria's public healthcare services.
"The difficulties presented by the state's fiscal environment does not mean the government can afford to prioritise the health of the economy ahead of the health and wellbeing of the state," read the 18-page submission, released on Wednesday.
The structural deficit cannot be resolved by targeting "inefficiencies" without "devastating results for the performance of the healthcare system", it said.
Rising WorkCover premiums and compliance costs, wage increases outpacing indexation, inadequate investment in health and wellbeing supports for workers and an ability to recall savings were identified as root causes.
"Without addressing some of these structural deficits over the long term, we will only see the gap between the health funding that our health services are receiving and the true cost of delivering these services continue to widen," chief executive Leigh Clarke said.
Nursing salaries have increased three per cent each year, while indexation for most health services ranged between 1.5 to 2.37 per cent from mid-2020 to mid-2023.
As such, the association wants all enterprise bargaining agreements factored in to the health budget in full.
"It remains critical that Victoria’s healthcare workforce is remunerated in a manner that recognises and values their role within the sector," the submission said.
"However, the Victorian government and the Department of Health must recognise that this additional cost cannot be borne by public healthcare services without the requisite funding."
WorkCover premiums for Victorian businesses were hiked in July from an average of 1.27 per cent to 1.8 per cent of remuneration.
A survey of the association's members showed registered community health services paid an average of $140,000 more in WorkCover premiums last financial year compared to 2022/23.
Public healthcare services will continue to struggle to shoulder the costs and may be forced to reduce staffing without state government intervention, the peak body warned.
"This will not only lead to staff burnout, but also longer waiting lists for some services and a reduction in affordable care - especially for vulnerable communities who are reliant on public healthcare services."
The association demanded the state budget fund new costs associated with any current or future increases in WorkCover premiums.
Other submission suggestions are extra funding for a statewide rollout of electronic medical records, $10.2 million to set up a four-year disaster funding pilot for rural and regional community health services and government intervention to mitigate thinning healthcare markets for regional Victorians.
Victorian Treasurer Tim Pallas will hand down his 10th state budget on May 7.
