The change prompted criticism from the Coalition and the Greens.
Hospitals Victoria,established by the government in 2024,said it worked closely with health services to manage their budgets.
“For smaller services in particular,cash on hand can fluctuate due to the normal timing of reporting,payments and funding cycles. These short‑term movements are expected and do not indicate financial risk,” a spokesman said.
“All Victorian health services had the funding they needed at the end of 2025 to meet their financial obligations and maintain high‑quality care.”
Victoria’s public hospitals typically aim to have 14 days of available cash at the end of each calendar month for unexpected costs and to avoid the government having to top up their funding. In late 2020,the government also committed to pay supplier invoices from small businesses – such as cleaning or laundry services at smaller health services – within 10 business days for contracts below $3 million. Some of Melbourne’s largest health services were still failing this.
Opposition Leader Jess Wilson said Victoria’s health system “remains on financial life support” and said the estimated $15 billion lost through the Big Build,revealed in a report into CFMEU corruption by Geoffrey Watson,came at the detriment of essential services.
“Fifteen billion could fund every single Victorian hospital for the best part of a year,but instead,that money has been lost to organised criminals and bikies all whilst health services suffer,” Wilson said.
“Only a Liberal and Nationals government I lead will stop the waste,clean up the books and sustainably invest in our health system through our essential services guarantee.”
A Victorian government spokeswoman said Labor had delivered record funding for hospitals,including more than $31 billion in health funding this year.
“This massive funding boost is giving every public hospital the certainty to plan for the future and keep delivering the world-class care Victorians rely on.”
The governmentgave health services a $1.5 billion bailout in 2024,prompting then-treasurer Tim Pallas to insist hospitals keep to their budgets.
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