Opposition Leader Tony Abbott says a coalition federal government would maintain existing levels of spending on health services.
Labor is making a concerted effort to attack the coalition over potential cuts to employment, education and health spending and has launched advertisements to support its claims.
Speaking at Sydney's St Vincent's Hospital, Mr Abbott said Australia had an outstanding health system which required "incremental change" but not a "shake-up".
"What we intend to do is maintain existing levels of health funding, but try to ensure some of that money is redirected from bureaucracies to frontline services," he said.
Mr Abbott said Labor had cut Medicare and hospital funding, "tampered with" the Pharmaceutical Benefit Scheme approval process and alienated many health professional groups.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
He said Mr Rudd had falsely claimed the coalition would target health funding to balance the federal budget, if it won government.
"The last thing we want to do is impose an overall cut in health funding which, as it happens, gives the lie to some of Mr Rudd's more shrill and hysterical claims last night," Mr Abbott said.
Mr Abbott extended his commitment on health to education funding.
"Overall health and education funding will be maintained," he said.
Mr Abbott also confirmed a coalition government would sell off the commonwealth's wholly-owned Medibank Private health insurer.
The timing depends on whether financial market conditions are conducive to a sale.
Its value is estimated at $4 billion or more.
Mr Abbott formally launched the coalition's health policy, promising to deliver a world-class health system underpinned by a strong economy.
The key goals are to tackle chronic diseases, provide faster access to newly approved medicines, invest in the medical workforce and prepare for the challenges posed by an ageing population.
It also proposes a review of the structure of Medicare Locals, the community health services networks set up by Labor, to make sure frontline services are being looked after.
"Our overall approach to health will be careful, collegial and consultative," the policy says.
