THE federal government has announced $5.3 million to support people living with chronic illnesses across western Victoria, including $377,606 for Lorne Community Council.

The hospital will use the funding to help people suffering from diabetes, cardiovascular disease, chronic obstructive pulmonary disease and asthma in the Lorne, Apollo Bay and Colac areas from July 1.

Corangamite federal member Sarah Henderson, who announced the funding last week, said chronic diseases were on the rise, could be debilitating to a person and could seriously affect their quality of life.

"The new services will help patients in varying ways including treatment, education about their illness, help with self-management and better coordination of their care.

"About half of all Australians have a chronic disease, and around 20 per cent have two or more, according to the latest statistics from the Australian Institute of Health and Welfare.

"Western Victoria Primary Health Network (PHN) is responsible for selecting the new providers and administering the new services."

Ms Henderson said PHNs were established by the federal government to improve primary health care by identifying local needs and providing services to meet these needs.

"Western Victoria is one of a number of PHNS which are driving local reforms, consistent with the Turbull Government's Long Term National Health Plan.

"The work of the PHNs mirror other government initiatives which will transform the way care is provided for people living with chronic and complex conditions."