Australia’s states say a looming hospital funding shortfall could put essential care at risk — and people with disabilities may feel the impact first. In a sharp escalation, premiers from both sides of politics accuse the Commonwealth of underfunding aged care, forcing hospitals to hold patients who could be discharged if places existed. When beds are blocked, emergency departments back up and access for patients who rely on timely, coordinated care becomes harder.
By AAP News
At issue is a new five-year hospital funding deal. The current standoff follows a 2023 commitment for Canberra to lift its share of public hospital costs to 42.5% by 2030 and 45% by 2035. State and territory health ministers now warn the latest offer would land much closer to 35%, which they argue leaves a gap worth “tens of billions” and risks Australians missing out on crucial services. The federal government rejects that claim, saying it remains committed to a fair contribution.
On the ground, premiers point to aged-care capacity as the pressure point driving hospital congestion. NSW Premier Chris Minns says “hundreds” of patients remain in public hospitals simply because there is nowhere else for them to go — a flow-on that squeezes beds, clinicians and budgets. Queensland’s David Crisafulli echoes the concern, calling aged-care backlogs a big part of the strain. For people with complex needs, including many with disabilities, delayed transfers and longer waits can quickly become delayed treatment and deteriorating health.
Clinicians want the politics to stop. Australian Medical Association president Dr Danielle McMullen says the blame game is leaving patients in the lurch and urges all governments to strike a sustainable agreement. The message is blunt: without a workable deal, hospitals can’t plan staffing, services or capacity with confidence — and patients pay the price.
The disability dimension is explicit in the negotiations. Federal Health Minister Mark Butler is tying the hospital funding agreement to broader reforms aimed at better supporting Australians with a disability and easing pressure on the NDIS. That linkage matters: when hospital and disability systems pull in the same direction, people are discharged sooner to the right supports; when they don’t, care fragments, families shoulder more, and avoidable readmissions rise. The design and level of funding will decide which path Australia takes.
Canberra says its most recent offer adds $20 billion over five years — $7 billion more than the previous proposal — and wants the agreement finalised by the end of 2025. States insist the numbers still fall short of what was promised and what hospitals need. For people with disabilities and their carers, the test is practical: will this deal reduce bed block, protect timely access to surgery and specialist care, and deliver smoother hand-offs to community supports? Until the numbers and the plan align, the risk is that hospital corridors become the waiting room for the disability and aged-care systems — and patients are stuck in the middle.
