The 1 July start date is looming and one network is opting for a voluntary amalgamation it hasn’t even submitted a proposal for yet.
With less than a month until Victoria’s 12 new local health service networks kick into action, at least one of them appears to be a long way from settled in its approach.
In August last year the state government acted on recommendations of its own Health Services Plan to scrap its 76-strong hospital services networks and replaced them with 12 LHSNs arranged geographically – six in Melbourne and six in the regions – to come into operation on 1 July 2025.
At the time the government promised it would not be forcing amalgamations within the networks but allowing them to run themselves via the boards of the hospitals within the networks.
Only one LHSN – Bayside – has opted to amalgamate.
In an estimates hearing this morning, however, Victorian health minister Mary Anne Thomas admitted that she and her department had not yet received a proposal from Bayside LHSN regarding the amalgamation, and doesn’t expect one until 1 January 2026.
Under questioning from Liberal Member for North-Eastern Metropolitan Richard Welch, Ms Thomas said:
“We haven’t received a proposal [from Bayside] yet.
“Our health services are talking to one another at the moment about bringing forward to government a proposal, and we’re expecting to see that by the end of the year,” she said.
“When we receive that proposal, we will consider it, but until such time as that … It is a proposal that is being led by the health services themselves, not by my department.”
Mr Welch was concerned that a network comprised of multiple facilities – Bayside includes Alfred Health, Peninsula Health, Bass Coast Health, Calvary Health Care Bethlehem, Gippsland Southern Health Service and Kooweerup Regional Health Service – would end up with one board, one CEO and one annual report if they amalgamated.
“The expectation is that the other networks will follow [Bayside] and eventually end up with one CEO, one board?” he asked.
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Ms Thomas said she expected the other LHSN hospitals would continue to be run by their own boards and CEOs.
Bayside, she said, was an exception similar to what had happened to Grampians Health which amalgamated in November 2021.
“Bayside is a voluntary merger proposal,” said Ms Thomas.
“There is a requirement to consult, and I’m sure that will be followed. We’ll make sure that those health service systems comply with all the consultative requirements that are laid down for such a process and which I would expect to have been undertaken before I would seek to approve such a proposal.
“I can say that I have met with many, many CEOs and board chairs right across the state, including each of those CEOs and board chairs that are involved in this proposal at Bayside, and that they have expressed to me, at varying points, their desire to come forward with a merger proposal which was driven entirely by the opportunities that they saw to deliver better care in their communities.”
The six metropolitan LHSNs are:
Barwon: Barwon Health, Colac Area Health, Great Ocean Road Health, Hesse Rural Health Service
Bayside: Alfred Health, Bass Coast Health, Calvary Health Care Bethlehem, Gippsland Southern Health Service, Kooweerup Regional Health Service and Peninsula Health
East Metro and Murrindindi: Alexandra District Health, Eastern Health, St Vincent’s Health, Yea and District Memorial Hospital
North Metro and Mitchell: Austin Health, Mercy Health (Mercy Hospital for Women), Northern Health, and Seymour District Health
Parkville: Dental Health Services Victoria, Parkville Youth Mental Health and Wellbeing Service, Peter MacCallum Cancer Centre, Royal Children’s Hospital, Melbourne Health, Royal Victorian Eye and Ear Hospital, Royal Women’s Hospital
West Metro: Mercy Health (Werribee Mercy Hospital) and Western Health.
The six regional LHSNs are:
Gippsland: Bairnsdale Regional Health Service, Central Gippsland Health Service, Latrobe Regional Hospital, Omeo District Health, Orbost Regional Health, South Gippsland Hospital, West Gippsland Healthcare Group, Yarram & District Health Service
Grampians: Beaufort & Skipton Health Service, Central Highlands Rural Health, East Grampians Health Service, East Wimmera Health Service, Grampians Health, Maryborough District Health Service, Rural Northwest Health, West Wimmera Health Service
Hume: Albury Wodonga Health, Alpine Health, Beechworth Health Service, Benalla Health, Corryong Health, Goulburn Valley Health, Kyabram District Health Service, Mansfield District Hospital, NCN Health, Northeast Health Wangaratta, Tallangatta Health Service, Yarrawonga Health
Loddon Mallee: Bendigo Health, Boort District Health, Cohuna District Hospital, Dhelkaya Health, Echuca Regional Health, Heathcote Health, Inglewood and Districts Health Service, Kerang District Health, Mallee Track Health and Community Service, Mildura Base Public Hospital, Robinvale District Health Services, Rochester & Elmore District Health Service, Swan Hill District Health
North Metro and Mitchell: Austin Health, Mercy Health (Mercy Hospital for Women), Northern Health, and Seymour District Health
South West: Casterton Memorial Hospital, Heywood Rural Health, Moyne Health Services, Portland District Health, South West Healthcare, Terang and Mortlake Health Service, Timboon and District Healthcare Service, Western District Health Service.