Victoria and Queensland have said "not yet" to Malcolm Turnbull's new hospital funding deal, but the states have left the door open to sign up in coming months.
At the Council of Australian Governments (COAG) meeting on Friday, NSW and Western Australia signed on to the new funding arrangement, but three other states declined.
The deal will see Canberra continue to pay 45 per cent of the cost of hospital funding but keep annual growth in federal spending capped at 6.5 per cent.
Victorian Premier Daniel Andrews says he wants to see concrete progress on Medicare reform to keep more people out of hospital, and further work around aged care.
"Pleasingly, there is an acknowledgement that we have to finally get some concrete reform and some agreed targets and effort around those areas and more," he told COAG on Friday.
Queensland Premier Annastacia Palaszczuk is waiting for an independent body to rule on the $170 million she says the state is owed.
That money will affect Queensland's baseline funding for the rest of the agreement.
"If that is forthcoming, we would be satisfied," Ms Palaszczuk said.
"The impact of not getting that $170 million could lead to a loss of $4 billion to Queensland. So we have an open mind."
The prime minister said NSW will get an additional $9 billion and WA more than $3.5 billion into their state hospital systems over five years from 2020.
"I look forward to other jurisdictions securing additional funding in coming months," Mr Turnbull said.
WA Premier Mark McGowan said it was a "line-ball decision" for his Labor government to sign up, but the right one.
NSW Premier Gladys Berejiklian said her state would receive funding with a growth rate of 6.5 per cent, rather than 4.2 per cent under the old deal.
However, SA Premier Jay Weatherill - who is fighting an election - said the federal government was preparing a $65 billion corporate tax cut while not providing sufficient health funding.
"It's a question of priorities."
The Tasmanian government is in caretaker mode and no decision on health funding will be made until after the March 3 election.
