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ABC News
ABC News
Health
political reporter Stephanie Dalzell

State governments, doctors pressure major parties for election commitment to permanent increase on hospital funding

Doctors have accused the major parties of letting people suffer by failing to increase funding for public hospitals.  (Flickr: Alex Proimos)

The states and territories are mobilising for a stoush with both sides of federal politics over public hospital funding, as doctors warn patients will suffer unless more money is committed. 

While health funding is an age-old battle, staging it during a federal election campaign takes the fight to a new level.

State health ministers are united in calling for additional support, with all eight jurisdictions sending a joint letter to federal Health Minister Greg Hunt last October, asking for "immediate additional Commonwealth funding".

This week, South Australian Health Minister Chris Picton told the ABC that public hospitals were under immense pressure. 

"In South Australia, here we have an absolute crisis in our healthcare system," Mr Picton said.

"If the Commonwealth was picking up their share of the funding, then we could do even more, help more patients, make sure that we can reduce ambulance ramping even more, and make sure that people can get the care that they need."

Typically, the federal government picks up 45 per cent of public hospital costs, with the states and territories covering the rest 

But the money is conditional — the Commonwealth puts the brakes on any large cost increases by limiting annual growth to 6.5 per cent, which means the states and territories have to cover any additional expenses. 

At the height of the pandemic, the Coalition agreed to pay a greater share of overall funds through a 50:50 funding deal that runs until 2023

But the states and territories are angling for that to be longer term, on a national public hospital funding bill that topped more than $66 billion in 2019-20.

South Australian Health Minister Chris Picton wants the Commonwealth's public hospital funding contribution to rise.  (ABC News: Lincoln Rothall)

The federal government has long argued it has already upped its funding significantly throughout the pandemic, and appearing on Nine Radio this week, Prime Minister Scott Morrison claimed if the federal contribution increased, the states would try to hoard the extra money. 

"What we're talking about is just the Commonwealth paying more and the state government paying less," he said.

"I mean, the same amount would be spent, it would just be the Commonwealth paying more."

But the states have dismissed those suggestions, arguing they would reinvest the additional money rather than pocket it. 

"What we're talking about is extra resources," Mr Picton said. 

"So I mean, this is really short sighted, unfortunately, from the Prime Minister yet again, we're not seeing him investing sufficiently in aged care in primary care, and in hospitals as well."

Australian Medical Association Vice President Chris Moy said Australians would be the ones paying the price if a deal was not struck soon. 

"It's basically allowing people to continue to suffer, not getting the care that they should receive," he said. 

"And to some degree, bears responsibility for people who are dying, or who suffer because of the lack of care."

Both parties agree to work with stakeholders over issue

COVID-19 has left a trail of budgetary bruises that both sides of politics are keen to heal.

Labor leader Anthony Albanese this week agreed to a discussion on the health funding issue, but stopped short of promising extra money.  

"What we will do is sit down with premiers constructively and work these issues through," he said. 

Anne Ruston, who will be the health minister if the Coalition is re-elected, told the ABC on Wednesday she was also open to discussions. 

"I will be seeking to work with all stakeholders in the health and the aged care portfolios to work on ways that we can make sure our world class health system and aged system are continuously improved," she said. 

But Dr Moy urged both parties to commit to increasing federal hospital funding, saying it was "mind boggling" it had not already happened. 

"The hospital system is clearly inadequate for the needs of the Australian population," he said. 

"We have hospitals that are essentially what we call in logjam, they are just full, in terms of providing care for people having surgery, for heart disease, all those sorts of thing.

"The states are very clear in the fact they can't do this anymore, and what they need is the federal government to contribute their share, frankly." 

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