Rudd to Reform Health Funding
Rudd to Reform Health Funding

In a resolute bid to arrive at a well-timed pre-election agreement, Kevin Rudd has employed his way through the states' antagonism to reforms to hospital funding.

But for those who expected for an actual health reform, the type that will guarantee the future sustainability of the system, the latest suggestions are liable to be dissatisfying as they proffer insufficient investment for long-term benefits and real enhancements.

The pre-election tornado of hospital calls and billions of dollars in handouts seems to have defused state hostility and persuaded the public to get support for the changes.

Polling recommends that the voters accept that adding more funds is the easy and successful remedy.

According to Rudd and Co., the states no longer have adequate funds for to fund health themselves.

Inflationary demands indicate that without Federal involvement, health care will very soon totally eat up some state funds.

In the past, the Federal Government had said that it would ease the burden by raising its share to 60% of the financing for hospitals, partially aided by its appropriation of 30% of the states' GST profits.

It made a variety of special agreements to get specific states over the line. Now, the handouts have risen to $5.4bn and, hopefully, $15.6bn for the period 2014-20.

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