A new health funding agreement thrashed out with the federal government will deliver an extra $700m into the state’s public hospitals over the next five years.

Premier Jeremy Rockliff hailed the hard-fought victory, saying two years of negotiations with the Albanese government had finally delivered a much-improved outcome for Tasmania.

Speaking after talks wrapped up in Sydney, Mr Rockliff said state hospitals would now be funded at record levels.

“This means more funding will flow into Tasmanian hospitals, ensuring our government can continue to build a strong and sustainable health system into the future,” he said.

“We have successfully advocated for a small state adjustment to recognise the diseconomies of scale and unavoidable costs associated with being a smaller state, which was a significant challenge recognised by the federal government.

“This agreement provides long-term funding certainty and ensures we can continue investing in frontline services, supporting our health workforce, and delivering better health outcomes for Tasmanians.

“Today’s agreement is a positive step forward and demonstrates what can be achieved when governments work together in the national interest.”

Tasmania’s result was part of a $25bn in extra health funding nationwide pledged by Canberra over the next five years.

At a press conference after the meeting, Mr Albanese said the Commonwealth would provide an additional $25bn for public hospitals to reach a $220bn over the next five years.

“This agreement represents one of the most significant national reforms in living memory to ensure access to world-class health care as well as disability support,” he said.

“It prioritises investment in our precious public health system and builds on my government’s measures to strengthen Medicare.

“It is a major step forward in addressing pressures that are there on health and aged care systems as well as on the NDIS, ensuring their sustainability into the future.”

“We know that we need to provide quality care for Australians with a disability, and the reforms will do that as well as ensuring that they are sustainable.”

Mr Rockliff said the deal had been a long time coming.

“Every single Australian, in my case, every Tasmanian deserves the very best of health care,” Mr Rockliff said.

“This has been some two-year journey. There’s been some very strong advocacy from all premiers and chief ministers to best represent their communities.

“This outcome, as I say again today, is welcome. It’s one that does have significant uplift in funding and one that we can support our respective health systems further going forward.”

Labor’s Shadow Minister for Health, Mental Health and Wellbeing Sarah Lovell welcomed the deal but said there were now no excuses for failing to lift the standards of the Tasmanian health system.

“For too long, Jeremy Rockliff’s Liberals have been too focused on pointing the finger and shifting blame for healthcare failings, rather than addressing the issues which continue to hold the system back,’ she said.

“Now that the Federal Government has finalised the new funding agreement, there are no more excuses left for Jeremy Rockliff to hide behind.

“After 12 years of mismanagement, the Premier must finally get to work and start fixing the issues, but no one trusts that he will.”

david.killick@news.com.au