SA secures billions in hospital funding deal
Extra billions in hospital dollars have been secured for SA with federal and state leaders signing off on a five-year deal after drawn-out negotiations.
South Australia’s public hospitals will receive an additional $2 billion in federal funding over five years in a deal reached between state and federal leaders at a National Cabinet meeting on Friday.
Current funding arrangements run out at the end of June, but a last-minute deal was struck on Friday before the state government goes into caretaker mode ahead of the March state election, which would have put any negotiations on hold.
Premier Peter Malinauskas said the commitment was a “landmark deal” that brought total federal government funding to SA’s health system to $15.2 billion.
“Our calls for a fairer funding deal have been heard,” Malinauskas said.
“This builds on the extra $9 billion our government has invested in South Australia’s health system since being elected four years ago.”
The Albanese government in December had offered $23 billion for public hospitals across five years, including $2 billion to help states manage elderly patients languishing in hospitals while they wait for aged care beds.
You might like
But states and territories insisted the federal government stick to a 2023 agreement that the Commonwealth would increase its share of public hospital funding to 42.5 per cent by 2030 and 45 per cent by 2035.
Health Minister Chris Picton said SA has led the charge to secure the “historic” deal.
“We’ve been leading a concerted push from the states for a fairer funding deal from the Federal Government for our hospitals and that’s now been reached,” Picton said.
“We will continue to advocate for South Australians on the national stage as we build a bigger health system, including an extra 600 extra hospital beds and more than 2,700 extra health workers.
The five-year agreement, which will kick in from July, will see the federal government provide an extra $25 billion for Australian public hospitals.
Australian Medical Association President Peter Subramaniam said the deal must mark an end to government’s “shifting blame” on healthcare issues.
Stay informed, daily
“For too long, responsibility for failures in access to care and patient flow has been blurred between Canberra and the states,” Subramaniam said.
“Different tiers of government have been shifting blame while patients fall through the cracks.
“This funding deal – an additional $25 billion over five years – removes some of the ambiguity and must mark an end to the blame game.”
The AMA SA called for transparency from each major party to show how they would spend the funding to address record ramping and bed block among key issues facing SA’s healthcare system.
Since the 2022 State Election, patients have spent over 164,000 hours waiting in ambulance ramps. This is the equivalent of more than 18 years lost to delays, according to December figures from the Australian Medical Association.
“All sides of politics here in South Australia must now present a detailed and costed plan to explain how they will use our share of the money to reduce ramping, shorten wait times in emergency departments, clear the essential surgery backlog, and support the workforce that keeps the health system running,” Subramaniam said.
“Today’s agreement must translate to clear, measurable improvements on the ground – it must lead to better care at the patient’s bedside.
“South Australians deserve clear answers, transparent targets, and leaders willing to work together across all levels of government to build a health system that is fit for the next generation – not just the next news cycle.”
The SA Liberals have announced a suite of health policies, including a $40,000 package to incentivise bringing GPs to SA, a scholarship program and retention bonuses for nurses and midwives.
The Liberals say they would also scrap GP payroll tax, trial extended opening hours for GPs and provide a free flu vaccine period.
Picton said a re-elected Malinauskas government would continue to build a bigger health system, including an extra 600 hospital beds and more than 2700 extra health workers.
Prime Minister Anthony Albanese said the deal would see more than $219 billion provided to public hospitals over the five-year period, which would be triple the amount of the last agreement.
– with AAP
