WIMMERA hospitals will be reimbursed their share of $107 million in health funding after the Federal Government abandoned its cuts.
The government originally cut the funding from Victoria because of a population data error.
The cuts affected Wimmera hospitals and caused West Wimmera Health Service to close 15 of its acute beds and put services and jobs at risk.
Cuts of about $368 million over three years will still apply from the next financial year.
Wimmera Health Care Group chief executive Chris Scott said he was pleased with the reversal.
He said he would wait to hear how much the service would receive.
The service would have lost $595,000 this financial year through the cuts.
"When the funding reversal has been completed we should be in a position to address the elective surgery reductions and waiting times,'' he said.
West Wimmera Health Service chief executive John Smith said the decision would benefit the region.
"From our point of view, it was absolutely essential that this was reversed,'' he said.
"It certainly made a difference for us.
"Those beds are reopened and it's business as usual.''
Mr Smith said the service would have lost about $175,000 through the cuts.
He said that money ensured better services for patients.
"It guarantees the security of services for our catchment area,'' he said.
"It guarantees the employment, not only for our staff, but for medical practitioners and others as well.''
Mr Smith highlighted the political nature of the cuts and said the federal election in September could affect further cuts. He said he would continue to take a strong interest in the issue.
"I think it's been a disaster and a catastrophe that it's got to this,'' he said.
"It's a shame the two governments could not sort it out in a more amicable way.''
Rural Northwest Health chief executive Catherine Morley said she was thrilled the cuts were reversed.
"It's great news for the country,'' she said.
Ms Morley said the service lost $115,000 through the cuts.
She said the reimbursed money would go towards projects such as a memory support backyard.
Ms Morley said the hospital had not cut any services but had put some projects on hold.
"We'll continue to be vigilant when we have to deal with it next financial year,'' she said.
Federal Member for Wannon Dan Tehan welcomed the funding backflip.
"Hospitals across Wannon were forced to take measures such as closing operating theatres for weeks at a time, and reducing services for mental health care,'' he said.
"I would like to congratulate all those hospital administrators, board members and community members who stood up and took Prime Minister Julia Gillard to task over these funding cuts.''