The Rudd Government has finally announced its plan to fix Australia's public hospitals, with a $30.9 billion funding takeover as its centrepiece.
The giant health and hospital reform program will result in the Commonwealth funding up to 60 per cent of all services, infrastructure and research costs in public hospitals.
New 'Local Hospital Networks' will pay for services, replacing the traditional model of Commonwealth grants to the states and territories.
The Government will also establish an independent authority to calculate the amount hospitals are paid for each service they provide.
In a press release, Prime Minister Kevin Rudd, Treasurer Wayne Swan and Health Minister Nicola Roxon called the reforms 'the biggest changes to Australia's health and hospital system since the introduction of Medicare, and one of the most significant reforms to the federation in its history.”
The government will fund the reforms by redirecting one third of the GST revenue currently paid directly to the states and territories, to health and hospitals.
Prime Minister Rudd has also promised a new national health network to bring together the eight state run systems under one set of 'tough' national standards, but says hospitals will be run locally in small groups with local professions given added powers.
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