The Victorian Labor government has voted with conservative MPs to stop the expansion of access to abortion services and voluntary assisted dying.
The defeated bill would have forced all hospitals which receive funding from the state to offer the procedures, including those with connections to religious organisations.
Reason Party MP Fiona Patten, who introduced the bill, forced a vote on the issue in parliament on Wednesday after negotiations with the government broke down.
Labor and the Opposition joined forces with a selection of crossbenchers to defeat the bill 28-7.
Those voting against included outspoken MP Bernie Finn, who was expelled from the Victorian Liberal Party in May for saying all abortions should be banned.
Many health services with religious affiliations rely heavily on their partner institutions for funding, in exchange for which they are required to uphold certain values.
Health Minister Mary-Anne Thomas blasted Ms Patten's proposals ahead of the vote, saying they would lead to some hospitals losing money.
"We have here in Victoria the most progressive laws in the nation when it comes to ensuring women can access the sexual reproductive services that they need, including access to termination of pregnancy," she told reporters on Wednesday.
Ms Patten said she was aware of cases when women were denied contraception at certain hospitals and that some patients do not have a say about where they are treated.
"They can can go to the Mercy or they can be sent to the Women's; they will get two very different services from two publicly funded hospitals," she said.
Shadow Minister for Health, and former midwife, Georgie Crozier hit out at Ms Patten's "flawed bill".
"There is no precedent in this state for health services to be mandated in the specific care and services that they provide - none whatsoever," she told parliament.
Greens leader Samantha Ratnam, who voted in favour of the defeated legislation, expressed her disappointment as she referenced the overturning in the United States of landmark legislation allowing a constitutional right to abortion.
"It is really important we keep these issues on the agenda after the Roe v Wade decision in the US. International events have domestic consequences," she posted to Twitter.
The bill would not have compelled individual doctors to provide the medical procedures.
