Rudd takes huge health gamble
Kevin Rudd has staked his political future on the biggest change to the health system since the introduction of Medicare, promising to give every Australian faster and better medical treatment.
But the Prime Minister's ambitious plan to take majority funding responsibility for the nation's 750 public hospitals will face fierce resistance from the States, which will have to surrender one-third of their GST revenue.
The PM said if he could not convince Premiers to back the idea he would take it to the people via a referendum at the next election.
Under the proposal, the Federal Government would pay 60 per cent of public hospital costs - up from the existing 35 per cent - and 100 per cent of GP services and primary care.
State health bureaucracies would be collapsed, with local doctors, nurses and financial experts put in charge of running groups of hospitals.
While these so-called Local Hospitals Networks would be authorities established under State law, they would be funded directly by the Federal Government and be charged with meeting national standards on emergency department and elective surgery waiting times, infection rates and patient care.
Australians would be able to see how their local hospital measures up, with performance statistics to be published on a website similar to the popular My School site.
Mr Rudd intends starting the transition to the new hospital funding system next year, meaning he not only needs agreement from each State but must negotiate passage of legislation through a potentially hostile Senate.
Premiers have been summoned to Canberra for a meeting on April 11 to discuss his plan but there are already signs of significant State disquiet.
WA Premier Colin Barnett said he was prepared to consider the changes if they improved patient care but insisted the requirement for the States to give up one-third of its GST revenue for a national funding pool was flawed.
"That's a sleight of hand - this is State funds to achieve a Commonwealth objective," he said.
Without every Premier's consent, the Commonwealth cannot change the 1999 agreement that sees all GST revenue flowing to the States and Territories.
The Australian Medical Association offered in-principle support and urged the States to carefully consider it. "The 60-40 funding split and the Commonwealth's 100 per cent funding responsibility for outpatients and primary care has the potential to minimise the opportunities for blame and cost-shifting," AMA president Andrew Pesce said.
Shadow health minister Peter Dutton said the plan was a mere "election fix", not a fix for hospitals, and would only entrench a new bureaucracy.
