A projected shortfall in health care funding has forced the nation's leaders to turn their attention to primary care and ways to keep people out of hospital.
A special leaders' retreat held by Prime Minister Tony Abbott with premiers and chief ministers on Wednesday commissioned further number crunching on the fiscal gap in health, which could rise to at least $35 billion a year by 2030, according to some estimates.
The leaders decided to keep tax changes - including increases to the GST rate and the Medicare levy - on the table as a way of addressing the looming health funding crisis.
While Australia had one of the most efficient health care systems in the world, it was agreed that health was a top priority for all levels of government, with a serious funding challenge made more difficult by an ageing population.
A new focus on primary care and keeping people out of hospital was necessary, a communique from the retreat said.
When it came to chronic care, the issue of diabetes, heart disease and mental health required particular attention.
There was also recognition of the need to consider extending Medicare to cover treatments in hospitals, based on efficient pricing.
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