Historic reform of our health and hospital system
The Commonwealth will become the majority funder of public hospitals and have full funding and policy responsibility for GP and primary health care ‑ driving better quality care, better value for money and ending the blame game.
A first for our health system
The National Health and Hospitals Network prepares our health system for the decades ahead. For the first time, the Commonwealth will be the majority funder of public hospitals, funding:
- 60 per cent of the efficient price of every public hospital service provided to public patients
- 60 per cent of capital, research and training in public hospitals
- up to 100 per cent, over time, of public primary care equivalent outpatient services.
The Commonwealth will also take full policy and funding responsibility for GP, primary health and aged care.
A sustainable footing for the future
Around one‑third of GST revenue will be dedicated directly to health and hospitals spending, for seven states and territories.
Beyond the forward estimates, the Commonwealth will fund the majority of growth in health and hospital costs. It has guaranteed no less than $15.6 billion in top up payments to the states for growth in the public health system from 2014‑15 to 2019‑20.
Without reform, there was a real risk that state health and hospital spending would have swamped state own‑source tax revenues by the middle of the century.
A well‑managed health system
In return for providing a secure funding base into the future, the Commonwealth will require the states to commit to system‑wide reforms to improve public hospital accountability, transparency and performance.
The National Health and Hospitals Network will be funded nationally and run locally. It will be guided by tough new national performance standards.
State and territory health spending as a percentage of own‑source tax revenue