Farrer MP and former federal health minister Sussan Ley fears Albury Wodonga Health has reached the crossroads and a major re-writing of the cross-border arrangements maybe required.
Ms Ley said the Victorian government's "seeming reluctance" to match NSW on much needed infrastructure spending was a huge concern at a time when speculation of a mega merger of North-East Victorian health services was not being ruled out.
But Ms Ley said bigger issues existed for the Victorian-controlled AWH.
"Our unique local health service can only thrive if both the Victorian and NSW governments are equally committed to its future," she said.
"It has been incredibly disappointing to see Victoria's seeming reluctance to properly fund new facilities.
"We really must have new infrastructure to meet the current and future needs of the border and North-East, with acute care and maternity services requiring serious money spent on them, very soon."
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The most glaring disparity of funding is for the upgraded emergency department at Albury hospital with NSW chipping in $30 million and Victoria only $6 million.
Plans for the revamped emergency department still haven't been publicly released with the timeframe for completion pushing out to the end of 2022 at the earliest.
Ms Ley said she had relayed her concerns about the plight of AWH to federal health minister Greg Hunt in recent times.
"I plan to meet with both Justin Clancy and Bill Tilley (shortly) to get a sense of how we can work together to achieve new funding for improving local medical services," Ms Ley said.
"I'm very keen for the Regional Deal, signed by five governments, to lift the profile of our region by providing world class medical research, doctor training and specialist doctors, and we need an upgraded hospital build to support this.
"If this means tearing up the current set of arrangements and starting again, that may need to happen."
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