Victoria continues to hold out on Malcolm Turnbull's hospital funding deal after accusing the federal government of cutting it out of negotiations.
The state Labor government says a proposed arrangement by the federal coalition government, which caps service funding increases, would cheat the rapidly-growing state of $2.1 billion over five years.
State Health Minister Jill Hennessy refused to sign on to a preliminary agreement at Friday's Council of Australian Governments meeting, as Victoria maintained it was still owed $104 million in funding from 2015-16.
Further inflaming the situation was a letter sent by federal counterpart Greg Hunt earlier this week, which bypassed her and went directly to public hospital bosses, trying to spruik the deal.
"This shows once again you can't trust Malcolm Turnbull when it comes to health," Ms Hennessy said in a statement ahead of the Friday's meeting in Sydney.
"He has attempted to deceive our hospitals - he has refused to pay funding our hospitals are owed and now he is trying to exclude Victorians from negotiations on a new health deal that could see Victorian hospitals short-changed $2.1 billion."
South Australia and the ACT on Friday signed up to the preliminary agreement, with Victoria, Tasmania, the Northern Territory and Queensland still holding out.
WA and NSW previously agreed to the plan.