Restoration of federal funding for Victorian hospitals is a short-term political fix that will come from cuts in other areas, Premier Ted Baillieu says.

Federal Health Minister Tanya Plibersek on Wednesday night announced a backdown in the ongoing stoush over hospital funding.

Canberra will reinstate $107 million in funding for Victorian hospitals, but it will bypass the state government and pay the money straight to local hospital networks.

Mr Baillieu says the money will come from other funding intended for Victoria.

"It is a short-term political fix and everybody knows it," he told ABC radio.

Mr Baillieu said it would take hospitals some time to absorb the funding after already making cuts.

"The damage has already been done. It's going to take some time for hospitals who receive this money to reverse changes they put in place," he told Fairfax Radio.

Mr Baillieu said he received a letter from the prime minister on Wednesday criticising his management of the health system.

"I've never seen anything like this," he said.

"It's extraordinary. I simply describe it as unbecoming."

Mr Baillieu said other states were also worried about funding cuts.

"All the health ministers (have) expressed real concerns about these changes," he said.

The state government has accused Canberra of using an incorrect estimate of Victorian population figures to slash $475 million from the state's health budget over four years, including $107 this financial year.

Ms Plibersek has disputed the claim, saying commonwealth funding has actually increased, and has accused Mr Baillieu of ripping $616 million from the state's health budget.