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Peter Breadon, Program Director, Health and Aged Care, Grattan Institute

Hospital funding deal sets a tight deadline for real reform, and the clock's ticking

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At the urging of the premiers, Prime Minister Anthony Albanese on Friday agreed to extend current public hospital funding until the end of the year.

The federal government will keep paying for 50% of new costs, up from the usual 45% in pre-pandemic times. The limit on how much costs can go up each year has also been suspended. The extension will cost A$760 million.

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