Premiers to cooperate over health

The state premiers have pledged to work with Kevin Rudd to fix the public health system, one of his first key tests as Prime Minister-elect.

Labor went to the election with a proposal to take financial control of Australia’s 750 public hospitals if the states fail to reach benchmarks to be set down under a $2.5 billion incentives and infrastructure package. Under the plan, the Labor Government would assess the states’ performance in mid-2009, and go to the 2011 election asking voters for a mandate to take over public hospitals if the targets were not being met.

Mr Rudd promised to convene the Council of Australian Governments within his first 100 days in power and establish a reform commission, which would be tasked with developing the benchmarks and the next five-year state federal funding deal.

In his first press conference as Prime Minister-elect, Mr Rudd nominated “establishing long-term arrangements for our public hospitals system” as within the Labor Government’s six-part primary agenda.

“That agenda of work will begin this week,” he said. The state premiers have already indicated they will cooperate with Mr Rudd’s tight deadline.