The Victorian Healthcare Association (VHA) has today released a Health Investment Strategy for Victoria, and our 2026-27 Victorian State and Federal Budget Submissions.
The Victorian Health Investment Strategy provides a comprehensive plan for strategic investment across acute care and emergency services, primary and community care, and health prevention and promotion. It lays the foundation for the investment which is needed in Victoria’s publicly funded healthcare system and expands on the VHA’s Victorian and Federal budget submissions, which outline key funding priorities for the coming year.
‘As the VHA’s inaugural State of the Health Sector 2025 Report demonstrated, growing health complexity and longer life spans have had significant implications for healthcare services, with the proportion of people with no chronic condition decreasing significantly over the past decade. This is placing greater pressure on healthcare organisations as people are requiring a more diverse and comprehensive mix of services,’ Ms Clarke said.
This call for long-term and strategic investment through the VHA’s Victorian Health Investment Strategy recognises that Victoria’s publicly funded healthcare sector is at a pivotal moment of transformation for service delivery across the state. This includes the establishment of Local Health Service Networks, increasing joint up care across the health system including Community Health Services, and ongoing efforts to reform the system across key areas such as aged care, mental health, and primary care.
‘The challenges ahead will require investment that makes the most of the healthcare initiatives that have already proven successful, allocated strategically across the system. All levels of government must commit to investing in the measures that support the long-term future of our public healthcare system,’ Ms Clarke said.
Ms Clarke said the VHA’s comprehensive plan for strategic investment will enable the sector to innovate, meet the growth in demand, improve workforce stability and deliver new and improved services that deliver the care Victorians expect, now and into the future.
‘With a Victorian State Election now close to one year away, this Victorian State Budget is one of the most important budgets of this term, with forward-looking commitments that seek to maximise existing reforms. Equally important is the next Federal Budget. The Federal Government has an important task ahead to deliver upon their election commitments, in particularly to strengthen our system of primary care.
‘Both Budgets therefore present a vital opportunity to invest in the future of public healthcare, positioning the sector well to deliver upon the challenging task of meeting increasing demand for different types of healthcare. We have developed immediate priorities to address this in our submissions, while releasing a Strategy that provides an overarching call for long-term investment,’ Ms Clarke said.
Ms Clarke said that right across Victoria, demand for care and services is growing, and expectations of the public healthcare system are changing.
‘The past four years have been shaped by increasingly challenging domestic and economic conditions. These challenges are not unique to Victoria; they are occurring right across the country and will require joint solutions between the Victorian and Federal Governments.
‘By investing strategically and with foresight, we can strengthen the Victorian health system and improve outcomes for all communities. We look forward to engaging constructively with policy makers, the Victorian and Federal Government, Opposition and the cross-bench over the coming years.’
Background
The VHA’s submissions and Victorian Health Investment Strategy contains targeted priorities centred around 5 themes. These themes reflect many discussions had with Victorian health services over the past year, including through metropolitan and rural and regional site visits, numerous forums and online drop-in sessions.
Fund the true cost of care: over the past few years, the gap between investment and the true cost of delivering healthcare has been widening. Fully funding the true cost of care will enable health services to meet rising patient demand, improve workforce stability and boost capacity across the system.
Connect the system: Victoria’s health system is fragmented, many component parts to its complex and diverse structure do not work seamlessly hand in hand. While improving system connectivity will take time, focused investment will allow the system to adapt, prioritising pathways that allow patients to move more smoothly across the health system.
Improve access to care: increasing prevalence and complexity of chronic disease requires expanded service models, with demand growing right across the system, particularly in primary and aged care. Addressing this will require targeted action, supported by appropriate planning and investment.
Attract and retain our workforce: the health and social services workforce is expected to lead industry growth to 2034. Despite strong projected growth, workforce shortages remain a sustained challenge, with critical need for sustained investment in workforce attraction and retention to ensure the sector can keep pace with community needs.
Future-proof health infrastructure: Victoria’s population is growing and changing, placing a strain on existing infrastructure and pushing up demand for healthcare across the state. Many facilities and assets are ageing, with buildings and operating theatres just some of the areas no longer fit-for-purpose or able to meet the complex and growing needs of Victorians. Forward looking investment in both new and existing infrastructure is needed.
Read the Victorian Health Investment Strategy
Read the 2026-27 Victorian State Budget Submission
Read the 2026-27 Federal Budget Submission
For further information contact
Toli Papadopoulos
0408 851 302
Visit our website: www.vha.org.au