Premier Daniel Andrews demands 50-50 funding split from state, federal governments for hospitals

Premier Daniel Andrews has urged the feds to throw the state’s crippling hospital system a lifeline when its Covid funding expires later this year.

Daniel Andrews will confront the federal election winner to demand a 50-50 funding split for hospitals, backed by other state leaders who want an extra $5bn a year from Canberra.

Their plea has already been rejected by the Morrison government, which is committed to providing 45 per cent of hospital funding and has upped this to 50 per cent during the pandemic.

But the Covid boost is due to expire in September, prompting the Victorian Premier to warn that will rip $1.5bn out of Victorian hospitals as he reignites his push for a permanent 50-50 deal.

Premier Dan Andrews warns $1.5b will be ripped out of Victorian hospitals without federal help. Picture: Ian Currie.

Anthony Albanese on Monday said he would “sit down with premiers constructively and work these issues through”, as he acknowledged emergency departments were under pressure.

The Labor leader did not make any firm commitments, however, as he said he would be “very measured” as Australia’s debt bill soared towards $1 trillion.

“We’re not promising things in advance and then we’ll say something different after the election campaign,” Mr Albanese said.

The Australian Medical Association has backed the push by all states for a 50-50 split, as well as the removal of the annual 6.5 per cent federal cap on funding growth.

AMA president Dr Omar Khorshid said both major parties were “halfway to nowhere on health” with three weeks left in the campaign.

“There’s a definite sense of Rome burning while the leadership is missing in action,” he said. The federal government argues it has increased health funding by 92 per cent between 2013 and last year, compared with state increases of 44 per cent over that period.

But Mr Andrews demanded more from the commonwealth, saying he and other state leaders were “very united on this”.

“We need as a nation to fund this properly, and a proper partnership … is a 50-50 equal effort,” he said.

The Morrison government has rejected the plea for a 50-50 funding split. Picture: Jason Edwards

“No matter who wins the federal election, these issues are not going away.”

“If it was good enough during Covid to fund health properly, then it’s good enough as we recover from Covid to fund health properly.”

At the 2019 election, Labor promised to deliver a 50-50 agreement on hospital funding.

Mr Albanese was more cautious on Monday as he campaigned in Queensland alongside Premier Annastacia Palaszczuk.

She said she was confident her federal Labor counterpart would listen to the demands of the states if he won the election.

“He will listen … and look at those gaps and we’ll be able to work with him, not someone who won’t even allow it to be on the agenda at national cabinet,” Ms Palaszczuk said.

Labor Leader Anthony Albanese said he would sit down with Premiers and constructively work through the issues. Picture: Jason Edwards.