Govt's health depends on hospital plan

The NSW Government and those in other states and territories have a month to decide whether to take their medicine.Their decision should be based on whether the federal health plan will cure the ills that plague our failing hospitals, in particular the acute case of buck-passing between the states and the Commonwealth. And the ball is firmly in their court. If they don't agree, Kevin Rudd will have to resort to a referendum which history would suggest will fail.One of the enduring problems with the present set-up is the complicated funding arrangements. Any move to streamline the system so that federal dollars allocated to health flow through the doors of local hospitals should be applauded. On the face of it, Mr Rudd's plan for the Federal Government to directly fund small groups of hospitals would seem to be such a move. It also appears to be a welcome move towards devolving power to hospitals at a local level - and away from the unwieldy and expanding area health services.Certainly, Mr Rudd's is a bold bid to fix the system. The goals of his proposed reform are worthy. But there can be no doubt it also represents the toughest assignment of his prime ministership. In comparison, the apology to the stolen generations and the Kyoto signing were a walk in the park. This is the issue upon which his government will be judged and his performance measured.