Govt won't rule out health reform backflip

THE Federal Government has refused to rule out dumping its former leader Kevin Rudd's proposed suite of health and hospital reforms ahead of next week's COAG meeting with the states.

Mr Rudd struck a deal with most states and territories last year to make the Commonwealth the dominant funder of public hospitals in exchange for 30% of their GST payments.

However, recent media reports have suggested Prime Minister Julia Gillard was preparing to ditch the reforms in favour of delivering funding directly to hospitals, and denying states promised money for expenditure growth and capital works.

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