Thought Leadership

The health workforce is becoming an election battleground

A $40 million Regional Health Workforce Incentive Scheme from the Victorian Liberals and Nationals points to a broader policy contest over how the state attracts, retains and supports its health workforce outside Melbourne - with real implications for health, aged care and regional service providers.

8 September 2026  -  GovernmentPolicy

With Victoria heading towards the November election, health policy is moving well beyond hospitals and waiting lists.

The Victorian Liberals and Nationals have announced a $40 million Regional Health Workforce Incentive Scheme, offering doctors, nurses, midwives and allied health professionals financial incentives to take up critical roles in rural and regional Victoria.

Eligible workers could receive up to $10,000 upfront, followed by further incentives of up to $10,000 for each year they remain in the role.

The plan also tackles one of the practical barriers to regional recruitment: housing.

Where appropriate, accommodation for health workers would be incorporated into new regional hospital developments, including West Gippsland Hospital and Mildura Base Public Hospital.

What does it mean for the health sector?

This is about much more than recruitment. It points to a broader policy focus on how Victoria attracts, retains and supports the workforce needed to deliver health and mental health services outside Melbourne.

For organisations operating across health, aged care, allied health, workforce services, infrastructure, technology and regional service delivery, there are some important questions to start asking now:

  • Could the policy create new opportunities for regional service expansion?
  • How might workforce incentives change recruitment and retention strategies?
  • What role could private and not-for-profit providers play in supporting regional capacity?
  • Could future hospital developments increasingly combine clinical infrastructure with workforce accommodation and other supporting services?
  • And importantly, what other health workforce and service delivery policies could emerge before polling day?

The bigger picture

The Victorian election is now less than three months away. For organisations working in healthcare, the period between now and November matters.

Policy positions are being developed. Priorities are being set. Relationships are being built. And decisions made now could shape the operating environment for years to come.

This is the time to understand what is changing, identify where your organisation fits and make sure the people shaping future policy understand your contribution.

At Stratagem Corporate Advisory, we are working with organisations to navigate this changing Victorian environment.

Our Victorian team brings senior experience across government, politics, policy, procurement and communications. We help clients understand what is coming, identify the opportunities and risks, build the right relationships and position themselves for whichever government Victorians elect in November.

If you operate in the Victorian health sector and are thinking about what the election could mean for your organisation, we would be very happy to have a conversation.


Originally published on LinkedIn, 8 September 2026.


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