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Prime Minister Anthony Albanese has called a meeting of his national cabinet in Sydney this morning as Commonwealth and state ministers try to reach an agreement on a long-running dispute over healthcare funding.

It is the Prime Minister’s latest push to reach an agreement on funding for public hospitals after his ministers reached an impasse with the states and territories.

The states claim the federal government has offered to increase its share of funding in 2023 to 42.5 per cent this decade and 45 per cent by 2035, but has backtracked from Albanese, who accused leaders of failing to restrict budgets.

But with South Australia set to enter caretaker mode in February ahead of the March election, the clock is ticking to finalize the deal.