Better health and ageing for all Australians

Media Releases

Setting the record straight

The Federal Government has provided record funding to the States for their public hospitals, taken pressure off the State system with private health insurance and worked on a range of measures to improve the State hospitals' safety and quality.

In this section:

Setting the record straight

The Federal Government has provided record funding to the States for their public hospitals, taken pressure off the State system with private health insurance and worked on a range of measures to improve the State hospitals' safety and quality.

The Federal Minister for Health and Ageing, Senator Kay Patterson, said the Commonwealth had a track record of delivering resources to the States to ensure they were more than adequately funded to run their hospitals efficiently and effectively.

The Commonwealth's Record

  • The Commonwealth has provided the States with a record $31.7 billion in funding for public hospitals - a 28% real increase over the previous agreements.
  • The Federal Government's private health insurance reforms, such as the 30% rebate, are taking pressure off public hospitals. The latest figures show that 0.4% fewer public patients being admitted to State-run hospitals and show a 12% increase in admission to private hospitals.
  • The Commonwealth is providing $682 million under the current Australian Health Care Agreements specifically to help States improve safety and quality and was instrumental in establishing the Australian Council for Safety and Quality to lead national efforts in this area.
  • The Commonwealth is taking the lead on improving cancer care obtaining State Health Ministers' agreement to prepare specific proposals on practical improvements to the organisation, delivery and funding of radiation oncology and related cancer services within 12 months. This is in addition to the $72.7 million in the 2002-2003 Budget to improve access for rural Australians
  • The number of Commonwealth funded operational aged care places rose by over 29,000 or nearly 26% over the past decade or so. There are now nearly three times as many residential aged care places as public hospital beds.

The States' Record

  • The States have more money from the Commonwealth yet they are treating fewer public patients in their hospitals. This is the first fall in the history of Medicare in the number of patients treated in State-run public hospitals.
  • State governments across Australia have closed more than 3,000 beds since the start of the current Agreements and more than 14,000 beds in the last decade or so.
  • While State run public hospitals are treating fewer public patients they are also treating more private patients - providing extra revenue that is only there because of the Federal Government's measures to increase the number of people with private health insurance.
  • Unfortunately, in the States' grab for money the concept of universal access to free public hospitals services that is fundamental to Medicare is under attack, as State-run public hospitals across Australia try to force people to use their private health insurance.
  • There is no evidence available to support States' claims that there is a relationship between GP services and pressures on emergency departments. The facts are that people attending emergency departments are sicker than those seeing GPs and are admitted to hospital in far greater numbers and proportions.
  • The States consistently call on the Commonwealth to engage in reform but then fail to deliver when offered the opportunity. Under the current agreements only three States have taken up the offer to improve pharmaceutical services for people as they leave hospital by allowing them access to the Commonwealth's Pharmaceutical Benefits Scheme.

Senator Patterson said rather than telling the Commonwealth what it should do in the next agreements, States should focus on meeting their responsibilities under the current agreements.

"NSW and the ACT are not even meeting their commitment to deliver the minimum level of public hospital services they agreed to provide under the current health care agreements and despite letters asking why, no explanations have been forthcoming," she said.

"The Commonwealth stands by its record, the State Health Ministers should focus on improving theirs.

"Instead of trying to score political points in the lead-up to next month's NSW election and trying to shift their responsibilities on to everyone else, the State Health Ministers would be better served by re-opening the beds they have closed, putting more of their own resources into the system and managing their public hospitals better to reduce waiting lists."

Media inquiries, contact Randal Markey, Media Adviser, Senator Patterson's office, 02 6277 7220.