Federal Health Offer Lacks Fat - Australian Medical Association

Main Category: Primary Care / General Practice
Also Included In: Public Health
Article Date: 28 Nov 2008 - 3:00 PST

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AMA President, Dr Rosanna Capolingua, said media reports on the Federal Government's opening offer to states on health was "way too thin".

"Examination of media reports today shows the offer falls well short of what is needed," Dr Capolingua said.

"The AMA has pushed hard for three things: more hospital beds, proper indexation of funding, and extra training places. The offer on the table falls well short on two of the three requirements.

"We need $3 billion to fund 3,750 hospital beds around the country now. The present offer is only $500m. At best this would fund 625 beds. The Garling Report released yesterday shows NSW alone needs 350 more beds a year over the next few years. This funding won't get sick and injured people out of hospital corridors.

"We called for 8 to 9 percent indexation. The offer is for 7.3 percent. This is an improvement on the 5.6 percent of the present agreement but, again, well short of what is demanded to maintain our public hospital system into the future.

"At first examination, the story on training looks a bit more positive. An offer of $1.1 billion, conditional on the states providing a further $540 million, includes a welcome increase in training places for GPs and specialists. This is a positive outcome, but we need to be sure the money is properly targeted.

"It's all a bit thin. The hope now is that the states can successfully raise the stakes at tomorrow's COAG meeting, and secure a deal from the Commonwealth that fully recognises an investment in health is an investment in Australia's future," Dr Capolingua said.

Australian Medical Association