3 Mar 2010

Australia plan to overhaul health system

4:15 pm on 3 March 2010

Australia's Prime Minister has unveiled a sweeping plan to take control of hospital funding by clawing back $A50 billion of goods and services tax revenue from the states and territories.

Kevin Rudd outlined the major changes at the National Press Club on Wednesday, the ABC reports.

The federal government would directly fund Australia's public hospital system in a bid to stamp out waste and will take over all GP and primary healthcare services.

The plan would be funded by pumping one third of the states' GST allocations directly to hospitals.

The government would take on 60% of all hospital funding, which includes the average cost of each patient, research funding, training, maintenance and improvements.