KEVIN Rudd faces growing distrust among premiers over his proposed health funding shake-up, reducing the chance of a negotiated agreement on a federal takeover of public hospitals.
With Western Australia and Victoria already openly hostile to the Prime Minister's plan to seize 30 per cent of state GST revenues to bankroll the move, Queensland hardened its attitude yesterday by linking its co-operation to a major increase in funding for aged-care services, The Australian reports.
And NSW Premier Kristina Keneally said her state's bureaucrats were "livid" over Mr Rudd's lack of consultation on the issue.
The comments came as Tony Abbott accused the Prime Minister of purposely alienating the states for political reasons.
He pointed to Mr Rudd's refusal to reveal to premiers details of other health reforms such as boosting bed and doctor numbers but expecting them to embrace his plan.
Mr Rudd was unmoved last night, demanding state leaders back his plan in the public interest.
"It's time to get on with it," the Prime Minister said.
Last week, Mr Rudd proposed to take 30 per cent of GST revenue from state governments to bankroll a commonwealth takeover of 60 per cent of the funding responsibility for their public hospitals.
He promised to improve hospital efficiency by creating local boards to deliver the services and said if states disagreed he would take the issue to the people via a referendum at or before this year's federal election.
Mr Rudd also foreshadowed further health reforms to be released later to lift hospital bed numbers, expand primary care, increase the supply of doctors and nurses, and improve preventive health programs, aged care, mental health and dental health.
In a messy interview on Melbourne's 3AW radio last week, Health Minister Nicola Roxon did not deny that the details of reforms such as setting maximum waiting times for hospital surgery had already been finalised.
But Ms Roxon refused to make them public, saying she first wanted to deal with financial governance.
Mr Rudd backed that position in an interview with The Australian on Friday. Yesterday, Queensland Health Minister and Deputy Premier Paul Lucas said the Bligh government agreed with the principle of a commonwealth takeover of hospitals.
But, he added: "It's not reasonable to expect us to sign up to the detail of things when we haven't actually seen them."
Mr Lucas said his state was under extreme pressure on aged care and would link extra funding to Queensland's support for Mr Rudd's health proposal at the Council of Australian Governments meeting.
While Mr Rudd had delivered on promises to provide more temporary aged-care beds to take the frail elderly out of hospital wards, Queensland faced a critical shortage of long-term aged-care places.
"I am extremely concerned that the aged-care sector has been surrendering bed licences, not taking up new licences," Mr Lucas said. "Root-and-branch reform of aged care, including paying providers more, is as crucial to healthcare reform as healthcare reform is of itself."
Victorian Premier John Brumby said Mr Rudd should simply return to the old 50-50 split on hospital funding with the states.
"In Victoria's case, that would mean close to $1 billion a year extra for our state from the commonwealth," Mr Brumby said.
"The reality is, I think as all the independent commentators have observed, the heavy lifting and the extra effort in health in the last decade on health has been done by the states.
"The Prime Minister is probably frustrated. I think he is frustrated that he has announced a major health reform and, to be honest, he hasn't got too many supporters out there."
Ms Keneally, who wrote to Mr Rudd last week seeking more details on his plans, said she had genuine questions about funding arrangements and service delivery, and was awaiting answers.
While Ms Keneally said she was positive about the opportunity for historic reform, "senior NSW government figures" had reported they were livid over Canberra's handling of the issue.
"They say the first they knew something was imminent was during the week beginning 22 Feb, when a set of bilateral meetings of officials on health reform was cancelled without notice or reason," she said.
West Australian Premier Colin Barnett, who last week ruled out handing over his state's GST, hardened his criticism, describing parts of the proposals as not having been thought through.
"I think the federal government is trying to pull together the detail now, quite frankly," he said.
Mr Abbott, speaking in Adelaide, said Mr Rudd should be more honest with the states.
"I think Mr Rudd knows this is going to be rejected," Mr Abbott said. "It's about the appearance of action rather than real action."
Mr Rudd said he had announced what areas were set for further reform. "In terms of hospitals, beds, doctors, nurses, aged care, dental health, mental health, let me just say this: we now have a once-in-a-generation opportunity to get hospital reform right. Doctors want reform of our hospitals to happen, nurses want it to happen, working families who can't find a place with elective surgery want it to happen."
Tasmanian Premier David Bartlett and South Australia's Mike Rann, both fighting re-election campaigns, endorsed Mr Rudd's proposals.




