PM throws states a $1.7 billion lifeline to save hospitals

Australia’s public hospitals will get $1.7 billion more from federal coffers in the next year as Labor seeks to prove its commitment to Medicare before the election while holding out on a fresh five-year deal with states.

Prime Minister Anthony Albanese on Wednesday said it represented a 12 per cent boost while Health Minister Mark Butler said it would help hospitals address strong wage pressure in the system, including in NSW where more than 50 psychiatrists have resigned over a wage dispute with the state government.

Hospital costs are rising because of wage growth as well as an ageing population, more complex disease profiles and the continuing impacts of COVID-19. People using the public system have faced ballooning elective surgery waitlists, long emergency department wait times and ambulance ramping.

“This funding will be delivered to states and territories to help cut waiting lists, to reduce waiting times in emergency rooms, and to manage ramping,” Albanese said.

“This matters to people, and this decision today will help save lives and lead to better outcomes for our nation’s hospitals.”

Butler also used Wednesday’s announcement to sharpen his attack on the Coalition’s health record as Labor uses Medicare to pitch itself to voters at the federal election.

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“There could not be a clearer difference between this prime minister’s approach to ensuring the Commonwealth is a reliable partner in the operation of this core part of the Medicare system, and the approach that Peter Dutton had when he was the health minister,” Butler said.

“Instead of digging in and making sure that his government was a reliable partner, he tried to walk away from funding agreements that had been struck by prime minister [Julia] Gillard with state and territory governments, Liberal and Labor alike, and cut $50 billion from Commonwealth funding – something that the liberal premier, Mike Baird, then described as a ‘kick in the guts’.”