PM rejects hospital job loss claims

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Poll

Should the feds take over health?

This poll ended on 12 March 2010.

Yes. The states have made a mess of it.

35%

Yes. As long as it means less bureaucracy

38%

No. Canberra will make it worse

20%

No. Councils should run hospitals

6%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

PRIME Minister Kevin Rudd has rejected claims that up to 20,000 people will lose their jobs under the Federal Government's planned health reforms.

Responding to a reporter's question about rumours of the cuts, the Prime Minister waved off the claim as ridiculous fearmongering.

"There will be a fear campaign every other Thursday about why we should not get on with the business of fundamental reforms to the health system," Mr Rudd told reporters at Sydney's Royal North Shore Hospital on Friday.

"Last week it was about closure of country hospitals. That's absolute nonsense.

"As far as this fear campaign, I would simply describe it in the same sort of terms.

"We have spent too many decades delaying reform of the health and hospital system ... too many decades pushing it to one side hoping that a bandaid would do when, in fact, much more radical surgery is needed."

Under sweeping changes, Canberra will take over 60 per cent of funding for state-run public hospitals, redirecting some of the GST revenue that currently goes entirely to the states.

Mr Rudd wants a response from the states and territories on the plan before an April 11 meeting of the Council of Australian Governments (COAG).

Mr Rudd described a meeting with NSW Premier Kristina Keneally on Friday about the reforms as "successful" and "productive".

"We had a long, positive, productive discussion about the future direction for this national health and hospital network," he said.

The prime minister said Ms Keneally raised some specific questions about elements of the reforms, related to the operation of local hospital networks and long-term funding for the healthcare system.

He said there would be no negative impact on the states and territories, and one third of the GST from the states would go towards building a hospital fund for the future.

Mr Rudd said he would now be "burning the shoe leather" as he travels around the country talking to other state premiers about his hospital reforms.

The federal government would begin implementing the network from July next year, Mr Rudd said.

NSW Premier Kristina Keneally says she has a "lot of hope" for positive change after her meeting with Prime Minister Kevin Rudd.

Ms Keneally said she and Mr Rudd agreed that healthcare delivery and funding must change.

"The funding model must improve," she told Sky News in an interview on Friday.

"The Prime Minister and I had a good, frank and full discussion today, and one that left me with a lot of hope," she added.

NSW has generally been supportive of the changes.

But the state has raised concerns about how the reforms will hit smaller regional hospitals and how reduced GST revenues will fit in with the yet-to-be released Henry Tax Review.

Ms Keneally on Thursday released a discussion paper on the reforms which will be distributed to health professionals and experts attending a state government seminar next week.

Former federal Nationals leader Ian Sinclair will co-chair the half-day seminar to be held on Monday at Sydney's Royal Prince Alfred Hospital.

Up to 60 participants have been invited to comment on the reforms and consider issues such as funding, governance and the impact on regional hospitals.

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