Overview
- Prime Minister Anthony Albanese wrote to premiers this week offering $21 billion over five years for public hospitals plus $2 billion over four years to ease aged-care patients stuck in hospital beds.
- State and territory leaders have described the proposal as underwhelming and unlikely to secure a deal, with Queensland’s health minister saying it does not meet their needs.
- Albanese urged leaders to engage in good faith and warned the Commonwealth could pursue other options if talks stall, while federal Health Minister Mark Butler said a deal before Christmas remains possible.
- Health ministers are set to meet again on Friday, and a National Cabinet sign-off could occur next week if sufficient progress is made, according to federal signals.
- The standoff stems from a 2023 commitment to lift the Commonwealth share of hospital funding to 42.5% by 2030 and 45% by 2035 and to move beyond a 6.5% annual cap, intersecting with pressures from aged-care shortages and NDIS reforms.