Vic legal action over fed health funding

Last ditch legal action is being prepared to stop the federal government taking $73 million in health funding it says Victoria got using a "sneaky accounting trick".

Victoria is taking the federal government to the High Court over the funding, but Canberra says the legal bid is a stunt.

State Health Minister Jill Hennessy says the funding cut could force the closure of Williamstown's emergency department and make Sandringham's part time.

"We have been left with no option but to take this to the High Court ... it's time Malcolm Turnbull stops the health cuts, returns the funding that is rightfully ours and puts the health and safety of Victorians first," Ms Hennessy said on Wednesday.

But federal Health Minister Sussan Ley said Victoria still hadn't shown any proof to back its bid to keep the money.

Ms Ley said Victoria used a sneaky accounting trick to artificially inflate growth in hospital activity in order to claim more funding than it was entitled to.

"While we'll await to see the outcome, this latest stunt from the Andrews Government smells more like an admission of guilt from someone trying to cover their tracks through strong arm legal tactics," Ms Ley said.

"I suspect this is more about Victoria desperately trying to avoid the wrath of the other states and territories at the COAG table, all of whom have hung the Andrews Labor government out to dry on this one."

But Victoria believes the funding cut constitutes a breach of the agreement the state entered into with the federal government.

Opposition leader Matthew Guy said it was a "lie" that emergency departments could close because of the funding cut.

"I don't think any of those emergency departments need to close because of anything to do with the federal government's funding formulas changing," Mr Guy told reporters.

The Victorian health department is preparing the legal paperwork and the application will be lodged in coming days.