Labor forces hospitals to raid workers' leave as funding crisis deepens

The Allan Labor Government is facing serious questions after revelations aired at a public meeting of Seymour Health that the hospital was instructed to draw down on untied funds, including money set aside for workers’ leave entitlements, to cover its operating deficit.

The claims were made during Seymour Health’s Annual General Meeting by the Chair of the Finance, Risk and Audit Committee, who said the Department of Health had explicitly advised the hospital it was required to fund its deficit through its untied funds.

The Nationals Member for Euroa and Shadow Assistant Minister for Health, Annabelle Cleeland MP, said the situation was deeply alarming for regional patients and health workers.

“What this confirms is what regional communities have feared for some time. Labor’s health funding failures are now being pushed directly onto hospitals and their staff,” Ms Cleeland said.

“Seymour Health recorded a $1.3 million deficit after being told it had insufficient funding from the Department of Health. That is not responsible budgeting. It is a stealth cut to frontline services, and it puts both workers and patients at real risk.”

Ms Cleeland said the hospital had already exhausted all efficiency measures without cutting community services, leaving staff entitlements as the last remaining buffer.

“These are not spare funds. These entitlements belong to nurses, doctors and healthcare workers who have earned them. Using them to prop up Labor’s broken budget is completely unacceptable.”

Shadow Minister for Health, Georgie Crozier, said the revelations were disturbing and pointed to a wider crisis across the hospital system.

“Labor’s mismanagement is now translating into service cuts, job losses and forced financial gymnastics just to keep regional hospitals operating,” Ms Crozier said.

“This Government can deny it all it likes, but the reality is hospitals are under extreme pressure, and this situation at Seymour Health is a warning sign for what may be happening right across the state.”

The Seymour Health AGM also heard that the hospital had sought a “letter of comfort” from the Department of Health to ensure it would be backed if required to pay out staff entitlements.

Despite this, the Government has refused to guarantee hospitals will be protected.

Ms Cleeland said the fear among workers and patients was now palpable.

“People in the room were openly worried about whether the hospital would be able to pay staff entitlements after the next flood, fire or emergency. That is not a question any community should be asking in 2025.”

“Regional Victorians deserve certainty, not political spin and hollow denials.”

Ms Crozier confirmed the Opposition will pursue the matter through Parliament and continue demanding transparency.

“We want to know how widespread this practice is, how many hospitals are in the same position as Seymour, and exactly what services are now at risk because Labor will not properly fund our health system.”

Ms Cleeland also issued a direct message to health workers across Victoria.

“If you are a nurse, doctor or hospital worker being asked to shoulder the burden of Labor’s funding failures, please come forward. We fear this is just the tip of the iceberg, and we will fight for you.”