The funding will be used to buy new equipment.

It includes $107,000 for an endoscope processor for sterilising endoscopes and $15,853 for a monitor for patients under an anaesthetic. Kyneton District Health Service chief executive Jennifer Gale said the state-of-the-art equipment would provide a higher level of safety for patients.

"We can also do more because the equipment is so much quicker than our old system which means more people can come and have their endoscopes with us," she said.

"We are extremely grateful for the support of the Government, allowing us to have the highest standards of patient care, as well as improving our efficiency and the access for our community to our services.

"This equipment is very expensive and it is often difficult to find such large amounts within our operational budgets."

Ballarat East MP Geoff Howard said the grant was part of the Targeted Equipment program.

In 2008-09, the program provided $9 million to rural health services to replace high-cost medical equipment that was past its use-by-date.

"This funding will enable health services to buy essential diagnostic and treatment equipment such as those items secured by Kyneton District Health Service."

He said health services in the Loddon Mallee Region were successful in obtaining a total of $1,583.585 in funding.