Victoria remains in fundamental disagreement with the Commonwealth over hospital reforms, Premier John Brumby says.
A second day of talks has failed to break the deadlock over the Commonwealth's planned takeover of hospitals funding.
"There are 78 recommendations in his proposal and we're working through them one by one," Mr Brumby told reporters in Melbourne.
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"We obviously discussed some of the funding arrangements, we've got some pretty fundamental disagreements on that at this stage."
Mr Brumby said he used the talks, which he described as productive but tough, to advance his alternative funding model for a state-based pool of money, contributed by the states and the
Commonwealth.
"I think it's more transparent, it's more open, it's more accountable, it will drive better performance," he said.
"Everyone will be able to see how much federal money's going into the system, how much state money's gong into the system and exactly what it's delivering in terms of the number of patients being treated in our hospital system and across the network."
Mr Brumby said a lot more discussion was needed to make progress on the issue but he remains resolute the federal government needs to commit to a 50/50 funding split and deliver more money now.
