Lives are at risk for Albury Wodonga Health patients because the Victorian and NSW governments have still not signed an agreement over the running of the hospitals, according to Bill Tilley.
Albury hospital comes under the control of the Victorian government under the arrangement, but Benambra MP Mr Tilley said an official intergovernmental agreement has been in discussions for four years.
It is now two years past its due date to be signed.
"To many this may seem a bureaucratic paper exercise, but the limbo land that has seen this agreement between NSW and Victoria ... affects vital projects, investment and planning at both campuses of Albury Wodonga Health," he said.
"Money is being wasted, yours and mine, while this is being delayed and clinicians suggest ongoing delays put the health of both patients and staff at risk."
He thanked fellow Liberal MP and Shadow Health Minister Georgie Crozier for raising the issue in Victorian Parliament this week.
Ms Crozier said AWH was a unique health service that had grown to the second largest in Victoria, only behind Barwon Health in Geelong.
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"The community, and importantly the board, want an answer from the Victorian minister," she said.
"The signing of this agreement will not only give certainty to so many Victorians but should lead to substantial investment in this health service and provide certainty to the people of the Border and the North East."
She told the Parliament that Victorian Health Minister Jenny Mikakos said back in January that the agreement was only a matter of weeks away.
The update provided by Ms Mikakos in April was that "negotiations are reaching their conclusion and I am hopeful of signing the agreement, alongside the NSW Minister for Health soon".
Ms Crozier also passed on the views of AWH.
"It believes that the NSW Ministry of Health sees no further barriers to signing the latest iteration of the intergovernmental agreement and would like Minister Mikakos to expediate to the joint signing of this vital document as soon as possible," she said.
"The action I seek is for the minister to not delay any longer in signing off on this important agreement that she gave a commitment that she would do and importantly provide an answer to the community as to when she will sign off on this agreement."