Victoria has announced an additional $1.5 billion investment in the state's health system, and scrapped plans to amalgamate hospitals. 

The decision by the state government follows a series of protests in regional Victoria and concerns from healthcare bodies regarding the potential negative impacts of forced mergers.

The new funding builds on the already substantial $8.8 billion allocated in the state budget. 

“As the sister of a nurse, and the mum of a daughter who has relied on the life-saving care of our hospitals - my priority will always be patients and their families,” Premier Jacinta Allan said this week.

Minister for Health Mary-Anne Thomas echoed this sentiment, saying; “Victoria’s health system is one of the best in the world, and these reforms will keep us on track to deliver even better patient care”.

The government has also accepted 26 of 27 recommendations from the Expert Advisory Committee aimed at creating a more integrated and efficient healthcare system. 

However, it has rejected the recommendation to forcibly amalgamate health services, a move that had sparked significant public outcry. 

“Forcing change risks being disruptive, impacting patient care,” the government stated.

A key aspect of the reforms is the establishment of Hospitals Victoria, a new agency within the Department of Health. 

Led by Siva Sivarajah, this body will oversee hospital operations, focusing on collaboration and efficiency. 

It aims to standardise payroll and IT systems across hospitals, streamlining administrative functions to allow more focus on patient care.

Hospitals Victoria will also be responsible for implementing a connected Electronic Medical Record System, addressing current inefficiencies and ensuring patient records are seamlessly accessible across all hospitals.

In line with another major recommendation, the government will replace the existing Health Service Partnerships with Local Health Service Networks. 

These networks will group hospitals by region, promoting collaboration and improving access to specialist care through formal relationships with major tertiary, women's, and children's hospitals.

The Victorian Healthcare Association (VHA) has welcomed the funding increase and the decision to abandon forced mergers. 

This funding comes at a time of record demand for healthcare services in Victoria. 

The last quarter saw over half a million emergency department presentations, the busiest on record. 

The additional $1.5 billion aims to support this demand and increase the target for elective surgeries to 210,000 for the financial year, matching last year's record.