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Government Federal

Commonwealth must boost funding for public hospitals

Catholic Health Australia 2 mins read

The Commonwealth should increase its funding of public hospitals to a 50-50 share with the states and territories, Catholic Health Australia said today as health ministers meet in Brisbane.

 

Analysis of AIHW data by Catholic Health Australia finds public hospitals are under severe pressure, leading to sliding performance in recent years. 

 

Only 67% of patients were seen on time in 2025, down from 71% in 2021. Only 53% of ED visits were completed within four hours in 2025, down from 67% in 2021.

 

In some states, patients wait more than a year after the clinically recommended deadline for their surgery.

 

“It is crystal clear that public hospitals need significant extra funding. Public hospitals are in crisis and the Commonwealth has the fiscal firepower to turn this around,” said Dr Katharine Bassett, Director of Health Policy at Catholic Health Australia.

 

“However, extra federal funding should not be unconditional. States should be required to prove they are not short-changing their hospitals and using funding for purposes other than health.

 

“The Commonwealth should also adopt a pay for performance model to incentivise states to clear their surging waitlists.”

 

Notes to editors: Catholic Health Australia (CHA) is Australia’s largest non-government, not-for-profit group of health, community, and aged care providers. Our members operate 80 hospitals in each Australian state and the ACT, providing around 30 per cent of private hospital care and 5 per cent of public hospital care, in addition to extensive community and residential aged care. There are 63 private hospitals operated by CHA members, including St Vincent's, Calvary, Mater, St John of God and Cabrini. CHA members also provide approximately 12 per cent of all aged care facilities across Australia, in addition to around 20 per cent of home care services. 25 per cent of our members’ service provision is regional, rural and remote.


Contact details:

Charlie Moore: 0452 606 171

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