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Table 1 Key elements of Commonwealth-state hospital funding agreements

From: The Australian Health Care Agreements 2003–2008

Agreement Political Objective Key Principles
1984–88 : Labor (Medicare Compensation Agreement) Introducing Medicare Compensation for cost increases and revenue losses
1988–93 : Labor (Medicare Agreement) Consolidating Medicare
Growth and reform of public provision
Incentives for system reform
Penalties for lower public:private bed day shares and excess private medical service use
1993–98 : Labor (Medicare Agreement) Entrenching Medicare
Expansion of public provision
Reward for relatively higher levels of public provision and for increasing public provision relative to other states
Post 1996, accountability for negotiated outcomes
1998–2003 : Coalition (Australian Health Care Agreement) Continuing with Medicare
Increased Commonwealth funding with increased accountability for states
Increased accountability on states for activity level changes
Increased clarity of Commonwealth responsibility if health insurance levels change
2003–08 : Coalition (Australian Health Care Agreement) Continuing with Medicare
Slowed Commonwealth funding growth
Increased accountability for states
Improved reporting, including of state spending
Requirement on states at least to match
Commonwealth funding increases
  1. Source: [11]