The federal government have conceded they do fund new hospitals but would not commit to providing money for a new hospital for Albury-Wodonga on Monday.
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Member for Indi Helen Haines asked Treasurer Josh Frydenberg to commit $300 million to building a new hospital for Albury-Wodonga during question time.
In her question Dr Haines outlined how some government members had said the federal government did not have a 'funding role' in developing a new hospital for the region.
She drew on the federal government's funding of hospitals in Shellharbour and Geelong as precedent for Commonwealth intervention in the usually state-based system.
"The Commonwealth is helping to support hospitals to a record amount Mr Speaker," Mr Frydenberg replied. "Under this government, hospital funding in Australia is at a record high."
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However Mr Frydenberg emphasised the role of state governments.
"Now we consider a range of infrastructure projects but as the honourable member knows there is a real role there for state governments," he said.
"State governments have a real role to play in funding those infrastructure projects.
"We'll consider proposals on their merits, Mr Speaker, but we recognise that the Commonwealth does help fund hospitals, but when it comes to infrastructure projects state governments have a key role to play."
Mr Frydenberg failed to directly answer whether the government would commit funding to the development of a new Albury-Wodonga hospital.
Medicos and other advocates have called for state and federal government funding for a new stand-alone hospital saying the current facilities need replacing.
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