Some states are still refusing to give up a third of their GST so the commonwealth can take over most of the funding of public hospitals.
At yesterday's COAG meeting, Mr Rudd offered a $1.2 billion sweetener for elective surgery, emergency and sub-acute beds, if the states agree to the GST clawback.
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Hold-out premiers have welcomed the extra money but warn that today's negotiations on the GST and their preferred option -- a joint federal-state funding pool -- will be difficult.
Mr Rudd has threatened to take the issue to a referendum if there's no agreement.
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