Doctors urge $3 bln hospital funding injection at COAG

Health Minister Nicola Roxon will propose - at the Council of Australian Governments (COAG) meeting - an activity-based hospital funding model.

Instead of federal block funding, payments would be linked to specific procedures performed.

Australian Medical Association (AMA) president Rosanna Capolingua said at least 3,750 beds plus the staff and infrastructure to support them were needed immediately.

Otherwise, patients would continue to endure long waits in emergency departments and languish on elective surgery waiting lists, Dr Capolingua said.

She said $3 billion of funding was needed straight away and should be indexed annually to meet rising costs in coming years.

"Emergency departments around Australia are struggling to care for patients who need to be admitted to hospital," she said.

"We know that there are 1,500 unnecessary deaths in Australia due to access block.

"That is more than the road toll. Governments do not want to hear it. They cannot bear to acknowledge it but that is the reality."

Roxon has said the existing block funding model provides the states and territories with little incentive to adopt innovative, effective practices in exchange for the money.

She will push for the activity-based funding model to be incorporated in the new Australian Health Care Agreements with the states which are currently under negotiation.