Health ministers meet in last-ditch attempt to strike new hospital funding, with billions at stake
Health ministers are meeting on Friday in a last-ditch attempt to strike a new hospital funding agreement before Christmas, with billions of dollars at stake.
The Federal Government has slightly increased its offer, putting an extra $21 billion over five years on the table plus $2 billion specifically aimed at getting older Australians out of hospitals and into aged care.
That money comes on top of the $12 billion that States would have got under the old agreement being replaced, Health Minister Mark Butler said on Friday morning.
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By continuing you agree to our Terms and Privacy Policy.He has also lifted the Commonwealth’s cap on funding growth from 6.5 per cent to 8.5 per cent for the coming year, then dropping to 8 per cent.
But many of the States – notably Queensland, which labelled the Federal Minister a Grinch – say it’s still not enough.
WA Premier Roger Cook on Thursday said the State leaders would make it clear to the Commonwealth that the offer didn’t go far enough.
“We want them to do better. We think they need to be a stronger partner in our overall hospital system funding,” he said.
Nevertheless, Mr Butler was hopeful of striking an agreement before the 12-month extension of funding granted at the start of the year runs out.
“I think health ministers know I’m not bringing more money today. I don’t have the authority to do that,” he told Radio National.
“The deal ultimately is going to be landed by first ministers, by the Prime Minister and the premiers and the chief ministers, particularly that big question of dollars going into hospitals, but also NDIS reform.
“Our job as health ministers today is to try to narrow those points of difference so that our bosses, the first ministers, can come together hopefully before Christmas and land a deal.”
He said the federally funded urgent care clinics were taking pressure of hospital emergency departments.
The Minister also said generous pay deals the States had struck with their health workforces were primary drivers of the large increase in costs.
