State and territory governments say the Commonwealth is reneging on its commitment to public hospital funding. Photo: James Coleman.
As the state and territories ramp up their fight with the Federal Government over public hospital funding, the nation’s doctors are demanding the blame game ends so that patients can be prioritised.
Premiers have met to discuss the hospital crisis and are now publicly expressing their concerns over what they say are health funding shortfalls from the Commonwealth.
State and territory governments say the Federal Government has walked away from a 2023 national cabinet hospital funding deal, which would have required the Federal Government to pay 42.5 per cent of their hospital bills by 2030 (rising to 45 per cent by 2035), and replaced it with an offer to pay only 35 per cent.
There were additional commitments over the NDIS that appear to have stalled.
The Federal Government claims it has offered the states an additional $20 billion in public hospital funding over five years, but the states say that’s a shortfall compared to what was agreed upon in 2023.
NSW Premier Chris Minns said he doesn’t know how the Commonwealth can claim to be offering more money.
“I can’t explain how they’ve gotten to those numbers,” he said.
“Commitments were made, particularly around the reforms to the NDIS, that would see the percentage share of Commonwealth funding for major public hospitals lifted by the Commonwealth government.
“Now that was a decision that they made, not us. And we entered into it in good faith and looked at their share of spending.”
The Premier said it will be patients who suffer because of the Commonwealth’s recalcitrance.
“Ultimately, the way this will be managed is people will be turned away from emergency departments,” Mr Minns said.
“There’s only so many doctors and nurses, there’s only so many paramedics that we can employ in our public hospital system, particularly if it’s going to be starved of funds in the years ahead.”
Queensland Premier David Crisafulli also hit out at the Federal Government, saying the states and territories shouldn’t have to foot the majority of public hospital funding.
“It shouldn’t be up to a level of government that only has a small portion of tax revenue to pay for a lion’s share of health; it doesn’t work,” he said.
“When the pressure continues to be pushed back on state governments, it’s not fair, and that’s why collectively we’re standing up and saying, ‘Sorry, Canberra, you’ve got to do more. You’ve got to uphold your end of the bargain when it comes to aged care, and you have to make a financial contribution to make sure that our health system runs properly’.”
Other state and territory leaders joined in, demanding that the Commonwealth step up its funding for hospitals.
Assistant Federal Treasurer Daniel Mulino has responded to the criticisms, stating that negotiations are still underway.
But he wouldn’t say if the Federal Government remained committed to the 2023 agreement.
“As to the broader ongoing negotiations between the state and the federal governments, I’ll let those play out their course,” Mr Mulino said.
The Australian Medical Association, however, has had enough of the squabbling and has called on all levels of government to resolve the issue and prioritise patients’ needs.
The national doctors’ lobby group acknowledges the “genuine cost pressures facing public hospitals”, including workforce shortages, an aging population and increasing patient complexity.
AMA president Danielle McMullen said funding Australia’s hospitals requires a proper and trusted partnership between federal, state and territory governments.
“Australians are caught in the middle of a political dispute as hospital emergency departments remain under pressure and surgery waitlists continue to grow,” Dr McMullen said.
“It’s time for the Commonwealth, states and territories to stop pointing fingers and come to a sustainable agreement.
“These challenges require a genuine collaborative approach. All levels of government need to lift their contribution and work collaboratively to deliver the healthcare services Australians deserve.
“We urge all parties to finalise a fair and adequate funding agreement that recognises the true cost of delivering modern healthcare … Patients deserve to be seen on time when they visit the hospital in an emergency – but instead, spending hours ramped in an ambulance has become the norm.
“All governments must end the blame game now, for the sake of all Australians.”
