Fed health cuts ridiculous, expert says THE federal government's reduction in funding to hospitals without warning is a ridiculous way to run the system, a health industry expert says. State governments say the Commonwealth last year reduced funding to hospitals in Victoria, NSW and Queensland, based on revised population estimates. Victorian hospital networks have since cut services and have been critical of the way the cuts were rolled out. Grattan Institute health program director Professor Stephen Duckett told a Senate inquiry he agreed with changing funding based on population figures. However, he said it was unfair to implement cuts without warning. "That means you have five months of the year to implement 15 months worth of cuts," he told the inquiry in Melbourne on Thursday. That's a ridiculous way to run a system. The federal government disputes the states' claim, saying commonwealth funding has actually increased, and has accused Mr Baillieu of ripping $616 million from the state's health budget.