Victoria's Health Minister has blasted one of Melbourne's largest hospitals for falling "well short" of standards after more than 500 operations were cancelled due to an equipment malfunction.

Hundreds of patients waiting for surgery are in limbo as the Austin Hospital continues to grapple with the fallout sparked last week by a rubber seal disintegrating on a machine used to wash surgical equipment.

The hospital in Melbourne's north-east has abandoned more than 300 elective surgeries this week and on Thursday announced the cancellation of a further 200 scheduled for next week.

The Austin Hospital has called off more than 500 surgeries following an equipment failure .

The Andrews government responded on Thursday by announcing a full review into the cancellations, which will be carried out by healthcare quality agency Safer Care Victoria.