Funding Melbourne?s hospitals:Some historical moments

Abstract

In 1993 the Victorian Government introduced casemix funding as part of itsrestructure of the public hospital system. Casemix funding provides a new basis forgovernment funding according to outcomes. At the same time, restructure of hospitalsallows for a reconsideration of who is eligible to use them. Historical research intothe growth of the public hospital system in Melbourne shows that attempts to reformthe hospital system are as old as the system itself. This paper argues that the views ofhospitals in funding crises and the solutions that are recommended have more to dowith the politics of the day than the economics of running hospitals.