FEDERAL Health Minister Nicola Roxon has urged planning for a new Bendigo hospital to go ahead unabated despite the Rudd Government’s $50 billion reforms announced this month.

The health sector shake-up - which would deliver funding control to the Federal Government - shouldn’t muddy the waters for those hospitals in need of costly upgrades, she said in Maryborough yesterday.

The State Government, which is responsible for health capital funding, has funded initial redevelopment plans for the Bendigo hospital and will be presented with another funding request before the May budget.

The new hospital is expected to cost about $700 million.

“The State Government should continue to make their decisions and their planning processes in the way that they have before,” Ms Roxon said.

“That is the role they will continue to have into the future. What’s changing under this plan, if it’s agreed to [at the Council of Australian Governments meeting] is the Commonwealth for the first time will actually bear some responsibility to meeting those capital costs into the future.

“That’s something that in the past commonwealth governments were happy to just wash their hands of and blame state governments if they couldn’t find the funds.

“The states will still have a responsibility to meet a share of those costs, so they still need to plan carefully to make sure that the decisions and investments are the right ones for their community.”

Ms Roxon also said fears the reforms would leave small regional hospitals in the cold were unfounded.

She met Maryborough District Health Service chief executive officer Peter Appledore and members of the hospital’s board yesterday to discuss the reforms.

Regional hospital chief executives told The Advertiser this month they were concerned governance of their hospitals would be passed onto Bendigo-based boards under the reforms.

Concerns have also been raised about the effect on the cost of health care.

“We’re making absolutely sure and we can make this promise to the community that prices that will be paid in the regions will not be set with city assumptions,” Ms Roxon said.

“That’s been clear since the Prime Minister announced his plan and we absolutely stand by that.

“We’re very interested in the [governance] model which already exists in Victoria because it has been working successfully.

“I’m sure we’re going to able to come to a suitable arrangement negotiated with the states.”