More than 100 elective surgery operations at the West Gippsland Hospital are likely to be axed over the next four months.
The grim news for those on the waiting list was delivered by chief executive officer Dan Weeks after the hospital was advised it would get more than half a million dollars cut from its expected allocation from the National Health Funding Pool.
Describing it as "a large blow to the West Gippsland Healthcare Group and the community" Mr Weeks said it had come almost three-quarters of the way through the financial year and the group did not "have the luxury of simply absorbing the loss".
In August WGHG announced a three-year plan to restore financial security after a $3 million blow out in expenses and an operating deficit last financial year of $1.2 million.
State Health Minister Jill Hennessy said the hit to the hospital's bottom line came from a change in the way Canberra (the Federal Government) calculates health activity funding.