Victorian premier vows there will be no forced hospital mergers

Victorian Premier Jacinta Allan has vowed there will be no forced hospital mergers after unveiling a major overhaul of the state's struggling health system.

The long-awaited Health Services Plan, made public today, recommended the state's hospitals be divided into eleven local networks.

Labor has repeatedly denied it won't go forth with the merger while offering a further $1.5 billion lifeline to ailing hospitals.

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"We will not be forcing hospitals to amalgamate," Allan reiterated.

"I'm not convinced that's in the best interest of patient care."

While the government rejected the recommendation to forcibly merge, they did accept the report's recommendation to group 76 health services into key networks.

Under the restructuring, a new agency called Hospitals Victoria will be established to oversee collaboration and cut down on bureaucracy.

In an effort to protect front-line services and end back-office duplication, an electronic medical record system will be rolled out, linking hospitals.

After months of uncertainty and demands to slash budgets the government is now being accused of bowing to political pressure.

Leader of the opposition John Pesutto said the government's response to the report's 27 recommendations was a "circus".

"What a dysfunctional circus we have here under the Allan Labor government here in Victoria," he said.

The shadow health minister, Georgie Crozier, is unconvinced there won't be mergers down the track.

"Let me tell you this funding only lasts for one year what happens to those health services after that," Crozier said.

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