Health: most fundamental reform since Medicare

Julia Gillard has launched the Government's hospital funding agreement with the states and territories, describing it as "the most fundamental change since Medicare".

Under the deal, the states will get an extra $175 billion over the next 20 years and the Commonwealth will fund 50 per cent of public hospital costs.

The agreement has come 15 months after former prime minister Kevin Rudd announced he had the support of all states except Western Australia.

Ms Gillard says the new agreement will provide:

• 2.9 million extra cases in emergency departments
• 2 million additional in-patient services, such as major surgery or treatment for severe conditions
• 19 million more outpatient consultations, such as minor surgery or physiotherapy.

Key initiatives

• A 4-hour target for emergency waiting times
• A target that 100 per cent of elective surgery patients get their operations on time
• Less waste, with hospitals funded for what they actually deliver
• Greater local control of hospitals
• Improved levels of public reporting on health services and expenditure

Ms Gillard says the deal will enable faster access to emergency department and elective surgery procedures, through the establishment of a 4-hour target for emergency waiting times, greater local control of hospitals, and less wasted funding.