Victorian Premier Ted Baillieu says the commonwealth must admit to cutting Victorian hospital funding, as both sides prepare to meet over the dispute.
Mr Baillieu says claims emergency departments were deprived of 12 million dollars in federal funding this month because his government allegedly failed to submit the required paperwork are ridiculous.
Federal Health Minister Tanya Plibersek and Victorian Health Minister David Davis will hold further talks in Canberra today.
A brief meeting between the pair in Melbourne earlier this month failed to find a solution, which has resulted in hundreds of beds being closed, and thousands of elective surgeries being delayed.
Mr Baillieu says the federal government should reverse its decision.