By NOEL MURPHY
BARWON Health’s missing millions have been belatedly restored after a Gillard Government about-face on its health cuts and the launch of a Commonwealth inquiry into the politics of the controversy.
The $4.9 million cut late last year was part of a $107 million federal razor that caught Victorian hospitals by surprise.
Barwon Health was forced to close beds, cut elective surgery rates and other services as well as look to freeze new jobs.
The Federal Government was forced to recant on its cuts, which it had based on controversial population figures, after health authorities launched a statewide campaign to regain their money.
The Government subsequently launched a high-profile advertising campaign, including Geelong newspaper advertisements, claiming Canberra was reversing State Government cuts.
Commonwealth Auditor-General Ian McPhee launched an inquiry into the advertising following concerns the taxpayer-funded ads were too political.
The missing money, which Health Minister Tanya Plibersek promised in February to return, started flowing back into Barwon Health’s coffers this week.
Barwon Health deputy chief Paul Cohen said the money meant the organisation could “continue to provide vital services for our community”.
“We have been working hard for this over the past month and it’s, pleasing to see it finalised.”
