Acting BHS CEO Andrew Kinnersly said they were working out from where the money would be pulled. 

“A budget reduction of this size, particularly given we were eight months into the financial year, presents a significant challenge to Ballarat Health Services,” he said. 

“Whilst everything will be done to minimise the impact on clinical services, a cut of this magnitude will have a significant impact on our ability to continue the investments on initiatives aimed at reducing waiting lists and times for elective surgery and specialist outpatient clinics.”  

Treasurer Scott Morrison made the call after the government found the former state government had used the wrong method to calculate the funding Victoria’s health system. 

Mr Kinnersly said the board would meet to decide the best way to deal with the shock cut, which came as part of a broader $73 million taken from the Victorian system. 

Victorian Health Minister Jill Hennessy said last week she was alerted to the change on January 22 by the funding pool administrator. 

A spokeswoman for Ms Hennessy said on Thursday they were calling for the decision to be reversed. 

"This latest round of Malcolm Turnbull's health cuts are set to hit Ballarat Hospital in March – creating a funding black hole nine months into its annual budget,” she said. 

"We urge the Federal Liberal Government to reverse these callous cuts, which will see patients in Ballarat waiting longer for surgeries and treatment." 

"Ballarat patients deserve better." 

Ms Hennessy has been in contact with service providers like BHS around the state in preparation for the withdrawal of the money. 

Ms Ley’s spokesman said last week it was a technical decision made so other states and territories were not short-changed.