Victoria Reluctantly Signs National Health Plan, Cutting Emergency Surgery Waiting Times and Delivering Hundreds More Hospital Beds

Strategic Insights -

Despite Premier John Brumby caving in on key opposition to the changes, the reluctant signature on the national health plan will have significant benefits for Victorian patients. The deal, agreed upon after two days of negotiations with Prime Minister Kevin Rudd, includes $890 million in immediate funding for more hospital beds and elective surgery treatments. This funding will increase Canberra's contribution to hospital funding, with the Commonwealth taking responsibility for 60% of funding using GST revenue.

Key Takeaways:

  • The national health plan deal includes $890 million in immediate funding for more hospital beds and elective surgery treatments.
  • The Commonwealth will take responsibility for 60% of hospital funding using GST revenue.
  • The funding deal will increase Canberra's contribution to hospital funding from about 41% to 44%.
  • Victoria retains control of the running of the hospital system through a state-run funding pool.
  • The states will manage the newly created state funding pools that distribute the cash to local hospital networks.
  • Premier John Brumby's opposition to the federal government's "stealing" Victoria's GST was alleviated with four significant concessions: the states to be the system manager, a hospital fund paid into by the states and Commonwealth, more immediate funding, and a $15.6 billion funding guarantee from 2013-14.
  • The health deal was brokered after midday talks between Mr Brumby and Mr Rudd, overcoming the GST impasse.
  • Western Australia, led by Premier Colin Barnett, held out on signing onto the deal, arguing that "Twenty pieces of silver won't work with Western Australia and won't work with me."

Statistics:

  • $890 million: Immediate funding for more hospital beds and elective surgery treatments.
  • 60%: The percentage of hospital funding taken on by the Commonwealth using GST revenue.
  • 44%: The new percentage of hospital funding contributed by the Commonwealth.
  • $15.6 billion: Funding guarantee from 2013-14.
  • 41%: Previous percentage of hospital funding contributed by the Commonwealth.
  • 50-50: Premier Brumby's original call for hospital funding between Victoria and Commonwealth.

Sources:

  • Byline: David Rood Canberra
  • [No additional external sources mentioned in the original text]