Health ministers on hospital funding collision course
Tense public hospital financing negotiations will be high on the agenda at the meeting of the country’s health ministers.
Health Minister Mark Butler will meet his counterparts in Brisbane on Friday as the federal government tries to reach a new five-year deal.
A deal has proven elusive since the national cabinet agreed in 2023 to increase the Commonwealth’s share of public hospital funding to 42.5 per cent by 2030 and 45 per cent by 2035.
Prime Minister Anthony Albanese sent letters to state and territory leaders this week proposing to add $3 billion of the additional $20 billion already on the table.
AAP understands that the amount put forward is still considered inadequate by the states.
In October, state and territory leaders said that even with the additional $20 billion on offer, the actual share of Commonwealth funding would be closer to 35 per cent and would “fall tens of billions of dollars short of what is required”.
Queensland Health Minister Tim Nicholls told state parliament on Thursday the latest proposal was inadequate and did not meet demand.
“Queenslanders expecting a Christmas present from their federal government instead heard from the Grinch,” he said.
Mr Albanese hit back at Mr Nicholls for making details of the offer public.
“If the Queensland government is truly serious about making a breakthrough, it will act maturely and respond to the letter I sent in good faith,” the Prime Minister told reporters.
WA Premier Roger Cook said the deal on the table was inadequate but he was willing to engage constructively with the federal government.
“I want to see a deal done by Christmas,” he told reporters.
“We want them to do better. We think they need to be a stronger partner in our overall hospital system financing.”
Labor has placed health at the center of its federal election campaign in early 2025, promising to inject more money into strained systems.
One in 10 public hospital beds are taken up by “stranded” patients needing alternative accommodation in aged care and disability support, a report commissioned by the states and territories has found.
He called on the federal government to take more responsibility through funding.
Mr. Butler said it was the province’s responsibility to ensure hospital systems were operating efficiently and effectively.
“At a time when huge pressure is mounting on all our health and aged care systems, we want to work collaboratively to make sure we get the best return for every dollar taxpayers put into the system,” he told ABC radio.
“I don’t think that’s an unreasonable thing to do.”
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