UPDATE: Over 3,000 elderly Australians are currently stranded in hospital beds, awaiting placement in aged care, as state and territory health ministers have just rejected a new funding offer from the federal government. The situation is urgent, with pressures mounting on the nation’s public hospital system.
State and territory leaders met with federal Health Minister Mark Butler on December 15, 2023, but failed to reach an agreement on funding, leaving vulnerable seniors in limbo. Health Minister Tim Nicholls of Queensland expressed frustration over the funding shortfall, previously calling Prime Minister Anthony Albanese a “Grinch,” but opted for a more conciliatory tone during the meeting. “We do want to negotiate,” Nicholls stated, emphasizing the importance of dialogue with the Commonwealth.
Butler remains optimistic about reaching a resolution before the holiday season, stating, “The clock is ticking,” with a critical deadline approaching as South Australia enters caretaker mode in late-February 2024. He warned that without a deal, new hospital funding arrangements may face significant delays, pushing the effective timeline to July 1, 2024.
Despite Butler’s reassurances, state leaders argue that the federal government must honor a 2023 agreement to increase its share of public hospital funding to 42.5% by 2030 and 45% by 2035. The funding currently on the table, which includes a proposed $1 billion top-up and an additional $2 billion for elderly patients, is seen as grossly inadequate by state officials.
The Northern Territory’s Steve Edgington highlighted the dire situation, citing that the NT receives the lowest health funding rate in Australia at just 31.8%. “Hitting even the national average would mean another $200 million for territory patients,” he asserted.
The Australian Medical Association warns that patients are the ultimate victims of this funding deadlock. President Danielle McMullen stated, “This failure condemns Australian patients to longer waits, greater suffering, and worsening access to care due to inadequate funding and government inaction.”
Latest reports indicate that nearly 10% of public hospital beds are occupied by patients who are unable to transfer to aged care or disability support facilities, exacerbating the crisis. This surge in demand is anticipated as the oldest Baby Boomers turn 80, increasing pressures on both the aged care and hospital systems.
State leaders are urging the federal government to take action swiftly to address these mounting problems. As the holiday season approaches, the urgency for a resolution grows, with many watching closely to see if an agreement can be reached in time to avoid further complications in the healthcare system.
Stay tuned for more updates as this story develops.


































