An eleventh-hour deal has been struck between the federal government and states and territories on public hospital funding.
Prime Minister Anthony Albanese announced the deal following a national cabinet meeting on Friday with premiers and chief ministers.
The five-year agreement, which will kick in from July, will see the federal government provide an extra $25 billion for public hospitals
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.
"It is a major step forward in addressing the pressures that are there on our health and aged care systems, as well as on the NDIS, ensuring their sustainability into the future," he told reporters in Sydney on Friday, referencing the National Disability Insurance Scheme.
"Under our federation system, what that requires is for the Commonwealth, together with states and territories, to work together in the interests of the respective states, but also in the national interest.
"That is what we have been provided for with this agreement."
Minns, Crisafulli welcome last-minute deal
Current funding arrangements run out at the end of June, but South Australia's election in March meant Friday's meeting was the last chance a deal could be struck before that state's government went into caretaker mode, putting negotiations between states on hold.
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.
States and territories have 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.
The government had offered greater hospital funding in exchange for states and territories picking up more of the cost of disability services such as the NDIS.
NSW Premier Chris Minns said the extra funding would help to alleviate pressures on hospitals from an aging population.
"We've got an aging cohort, so as much as the system is stretched today, we can expect even further problems in the future," he told reporters.
"But we're very grateful that we've got this agreement today."
Queensland Premier David Crisafulli had previously called for a better deal from the federal government, but said the agreement was a good move.
"If you're asking me whether or not I would have liked to have seen more, of course, and if you're asking whether or not we're going to fight for more in the future, you bet. But we've taken a really big step forward today," he said.
"The willingness for the federal government to say that is an important issue, combined with the extra funding today, shows a willingness to work together."
The prime minister said the funding deal would help provide improved health outcomes.
"We need to get older, longer-stay patients out of hospital rooms and into dedicated care, and the aged care reforms will assist with that," he said.
"This funding deal is about a better deal for Australians, about better health care, about strengthening Medicare."
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