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States sidetrack health reform agenda

The Minister for Health and Ageing, Senator Kay Patterson, expressed disappointment that discussions on the health reform agenda had been sidetracked today by the States.

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29 November 2002

States sidetrack health reform agenda

The Minister for Health and Ageing, Senator Kay Patterson, expressed disappointment that discussions on the health reform agenda had been sidetracked today by the States.

"I am disappointed that the productive reform agenda that we started six months ago has been hijacked by unproductive arguments about who will put their money on the table first," she said.

Senator Patterson said, "The Federal Government has contributed an increasing share of health funding while the State and Territory share has fallen".

According to Australian Institute of Health and Welfare figures, the Commonwealth's share of public hospital funding was 48% in 2000-01, and the States' share was 43% - down from 47% in 1998.

Commonwealth funding has been rising in all areas - 28% real increase in funding to States and Territories for public hospital, increased funding to private health insurance, more funding to the Medicare and Pharmaceutical Benefits Schemes.

New South Wales did not appear to support the Federal Government's private health insurance policies, asking that the matter be referred to the Council of Australian Governments for consideration.

Senator Patterson told the State Ministers that the Federal Government's private health insurance had resulted in the first ever fall in admissions to public hospitals. Admissions to private hospitals had risen by 245,000, taking the strain off the public hospital system.

The Health Ministers had sought expert advice from a range of clinicians on the best way to deliver better health outcomes for patients.

"I thought we were making headway with the important reform agenda to ensure the best possible health outcomes with the available resources by making sure care is safe, effective and responsive to the needs of the Australian community."

Senator Patterson said real progress was being made on these issues while the current health care agreement with the States and Territories runs until the middle of next year.

The current agreement has delivered a 28% real increase in funding for State and Territory hospitals over the past five years. The Federal Government allowed the States to keep $3 billion it was entitled to clawback because of the big rise in private health insurance.

Media Contact: Randal Markey 0417 694 520