Eastern Health has been forced to close 26 beds in the wake of an $8 million funding cut by the federal government. The cuts have led to the closure of surgical and palliative care beds, the cancellation of 140 non-urgent joint and replacement surgeries, and the suspension of weight loss operations. Lilydale's palliative care and outpatient clinic has also been permanently closed and Eastern Health has been forced into suspending the Kool Kids Positive Parents mental health program.