States say funding shortfall puts hospital care at risk

States say funding shortfall puts hospital care at risk

Author: AAP

Last Updated: 06-10-2025

Battlelines are being drawn in a fight between states and the federal government over who should pay for health and disability services.

In a blistering statement, state and territory health ministers claim Commonwealth funding is falling tens of billions of dollars short of what is needed.

They've warned the supposed lack of spending could result in Australians missing out on crucial hospital services.

The stoush stems back to a deal struck in late 2023, which requires the Commonwealth to boost its support for public hospitals by billions of dollars.

Federal Health Minister Mark Butler promised to cover 42.5 per cent of the running costs by 2030 and 45 per cent by 2035, with the states to pick up the rest.