Kevin Rudd's plans for a tightening of the federal grip on hospital funding could rely on agreement at the COAG meeting next week - but state governments could yet prove a thorn in Rudd's plans for more control from Canberra.
Premier Keneally is hosting a telephone conference with other state leaders to discuss Canberra's hospital reforms, just hours after the prime minister released the plan's final details.
A 95-page blueprint outlining the federal government's health and hospital reforms was published online today following discussions with state and territory leaders.
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.
Keneally leaning towards deal
The federal government has previously threatened to hold a referendum if it doesn't get its way in its plan to increase the percentage of federal funding that goes into hospitals, but Keneally has said she will not sign up to anything that leaves NSW taxpayers worse off.
"We're happy to work around the clock up until COAG on Monday (April 19), and we're happy to stay at the bargaining and discussion phase as long as possible so that we get the right outcome for NSW," she said earlier on Monday, but said she could not "sign NSW up to a plan about which I don't have full information."
Ms Keneally says state leaders are "united in the desire for change of the Australian health system".
"We're also united about it being the right change - change for the sake of change does no one any good," she said.
The final plan includes an additional $650m to cut elective surgery waiting lists by allowing Medicare-funded surgery in private hospitals - one of Ms Keneally's key concerns.
It follows an earlier pledge of $739m to take over aged care services offered to the states as a sweetener to back the reforms.
"The new beds for aged care are absolutely welcome, as is the commonwealth's commitment to expanding multipurpose services in rural and regional areas, as is their commitment to funding those people who currently sit in a hospital bed, but should be in an aged-care bed," Ms Keneally said.
"All up, we see this as a package that we can wholeheartedly welcome."
Queensland Premier Anna Bligh says she's close to agreeing to Rudd's proposals, but Victoria and Western Australia have proposed major amendments.
State and territory leaders will meet Rudd at next week's COAG meeting to try and thrash out a deal.
