Pressure is mounting on the Australian federal government to intervene in Tasmania’s struggling health network, as state officials accuse it of failing to fulfill a commitment to increase funding. Premier Jeremy Rockliff highlighted that citizens are facing significant delays in accessing aged care and the National Disability Insurance Scheme (NDIS), attributing the ongoing crisis to insufficient federal financial support.
In a statement, Rockliff claimed that the federal Labor government has made no substantial progress on its pledge from 2023, which promised to cover 42.5 percent of public hospital running costs by 2030 and 45 percent by 2035. He estimated that Tasmania is grappling with a shortfall of $673 million as a result of these unmet commitments.
“The reality is, the federal government, when it comes to percentages for our health system, is actually going backwards, not forwards,” Rockliff stated. He emphasized the urgency of the situation, revealing that over 90 individuals are currently “stranded” in hospitals while awaiting placement in aged care facilities or approval for NDIS support. “This is not good enough,” he added.
Negotiations for Hospital Funding Intensify
As negotiations continue between state leaders and the federal government, the health minister’s office reported that an updated funding proposal includes an additional $20 billion over the next five years. This offer is $7 billion more than the previous proposal made in December 2023 and builds on a commitment of $195 billion already established.
Despite these figures, state leaders argue that the federal contribution would only amount to approximately 35 percent under the latest proposal. A government spokesperson remarked, “The Commonwealth is prepared to negotiate in good faith and looks forward to discussing the offer with states… we want to see it finalized by the end of the year.” They also noted that Tasmania’s hospital funding has seen a 14 percent increase for the current financial year.
Tasmanian Labor MP Sarah Lovell has echoed concerns regarding the state of the hospital system, attributing the crisis to the Liberal government’s management. “Tasmania’s public health system is in crisis, and with no plan except trying to blame everyone else, the Liberals can’t be trusted to fix it,” she commented.
The rising costs in Tasmania’s public hospitals have been linked to several factors, including a growing number of long-stay patients, workforce shortages, high inflation, and increasing complexity in patient needs. As discussions progress, stakeholders await a resolution that adequately addresses the funding shortfall and improves health services in the state.
