NSW: Fed govt's funding proposal won't meet cost increases:Carr

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NSW: Fed govt's funding proposal won't meet cost increases:Carr

SYDNEY, April 24 AAP - The federal government's health funding proposal to the stateswould not cover the rising costs of maintaining the health of Australians, NSW PremierBob Carr said today.

Prime Minister John Howard yesterday announced conditional funding totalling $42 billionif the states met commonwealth requirements.

Mr Carr today said the offering wasn't enough to cover rising health costs.

"You've got health costs going up eight per cent a year but the commonwealth sayingwe'll offer an increase of 5.5 per cent a year," Mr Carr told journalists in Sydney.

"We say this is inadequate, a shortfall of $900 million."

He said the states wanted to cooperate but it was up to the federal government to bereasonable with its offer.

"We want to be cooperative on this," Mr Carr said.

The effect on public hospitals from changes to the Medicare bulk billing system alsoneeded to be taken into account, he said.

Mr Carr said many patients who could see a doctor were cramming emergency wards becausethat was the only place they were still able to get government-funded health care.

NSW Health Minister Morris Iemma yesterday said the federal proposal also did not considerthe impact of an ageing population and the introduction of costly new technologies intothe public hospital system.

AAP as/bd/nf/cjh/br

KEYWORD: HEALTH NSW DAYLEAD