Border Medical Association chair Barb Robertson said Ms Ley's comments were a direct contradiction of community sentiment.

She said comments dissolving a cross border health service did not recognise the value gained by Albury and Wodonga and its surrounds having one health service so that there can be access to care for people both south and north of the river.

"We need all governments contributing to create a one-site, fit-for-purpose hospital," she said.

"To get that done, we need all levels of government working together in the room, not lobbing hand grenades at each other from across the river.

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"We remain frustrated at the lack of consistent approach by all governments in recent years.

"What we are calling for is cooperation not reprisals. It is exactly why we are asking for the federal government to help bring the states together to sort this out... not to try and create further schisms.

"In the week that our community and our clinicians have cried out for the political spectrum to be united in delivering a brand new single site hospital it is perplexing to see these interjections this week."

Craig Underhill, Albury Wodonga Health's director of cancer services, said Ms Ley's comments undermined the long-running campaign for a new single site hospital.

"Sussan Ley is wrong - going back to two services across the Border would be detrimental in the extreme," he said. "It's a blame game that's being played and is not helpful. What we need is a single site hospital.

"We have a unique position and this calls for a unique funding approach. What Sussan Ley says is undermining the message from last Sunday's rally. Speakers and the public made it very clear that they don't want point scoring, they want cooperation to achieve a good result."