Originally left out of the government's healthcare reform package, the mental health sweetener was added in the final throes of negotiations to entice Victoria and New South Wales to sign the federal health reform plan.

The recognition is a pleasing outcome for mental health groups such as Headspace, a youth-focused early-intervention program that has been earmarked for a chunk of the extra funding.

"It's a positive first step, for sure," Headspace Western Melbourne executive officer Nick Prendergast said. "We'll be in a good position to lobby for the funding considering the population boom that we've been dealing with in the western suburbs."

While the federal government's initial snub of the mental health sector had many people concerned, the final result was a relief for Mr Prendergast. "It's a matter of people behind the scenes lobbying on our behalf that changed the situation. It's so important that the area gets funding like this because mental health affects all aspects of life for young people." The win for mental health remained tainted by the government's continual focus on 'fixing' hospitals ahead of primary health, according to Western Region Health Centre CEO Lyn Morgain. "That the PM and ministers are talking about health is important, but we don't think what we are seeing takes the focus off hospitals," Ms Morgain said.