Funding security extended for state hospitals

The extension came as Australia reached the 80 per cent double vaccination threshold on Friday.

Health Minister Greg Hunt. Picture: Gary Ramage

The federal government will ­extend a hospital funding security blanket for states and territories to assist with their reopening plans ahead of the Christmas holidays, as the nation reached the 80 per cent fully vaccinated milestone on Friday.

Scott Morrison, who has urged state leaders to stick to the ­national reopening plan, said on Friday Australia had achieved a “massive breakthrough”. The milestone triggers the next stage in Australia’s national reopening plan, with a move to minimal ongoing restrictions. But hopes of a united nation for Christmas were dashed as West Australian Premier Mark McGowan revealed his plan to keep the state’s borders closed until it reached 90 per cent double-vaccination.

While the federal government is confident the health system can withstand a surge in Covid cases as restrictions ease, state and territory leaders have called on the commonwealth to fund 50 per cent of Covid health costs until 2023. But the federal government has ruled out an increase in funding, with existing hospital funding arrangements remaining.

Mr Morrison, who returned from the Glasgow climate change conference this week, met with state and territory leaders on Friday to discuss the new health package. The extension of the minimum funding guarantee for hospitals means states do not lose out on funding due to Covid-19-driven disruptions.

Health Minister Greg Hunt said the extension recognised that the virus was still have a “significant impact” on public hospitals, particularly in NSW and Victoria.

“As restrictions are easing around Australia, particularly in areas which have experienced outbreaks of the Delta variant of Covid-19 in 2021, many hospitals are returning their focus on the jobs they do so well, emergency care, cancer care, elective surgery and all the critical services which have been less of a priority during the pandemic,” he said.

Federal health officials remain concerned about the lagging double-dose vaccination rates outside jurisdictions hit by Delta lockdowns. Both Queensland and Western Australia are yet to fully vaccinate 67 per cent of their residents aged over 16.

National cabinet is facing demands from business and industry groups to expedite the reopening of Australia’s international borders and fast-track the phasing out of restrictions so ­foreign arrivals can help fill ­labour shortages.

Australian Industry Group chief executive Innes Willox is pushing for December 1 to be recognised as a “national reopening day” where all major restrictions are removed and borders opened.