Final offer has been made by Kevin Rudd to the states on his health reform package.

It was declared by Victorian Premier John Brumby's that the state should keep hold of 30% of GST revenue. On Monday night's teleconference it was told that all the hospital funding should be shared, most probably to be circulated by some independent authorities.

To allow the commonwealth to increase its public hospitals contribution from 35% to 60%, the funding would change from states to common wealth. With common wealth around 150 local hospitals would be set up. It would also make hospital payments to maintain standards for access and quality.

The commonwealth's payments would be made on an efficient price with distinction for small rural and remote hospitals.

Around 40% of the public hospitals costs would be met by the states and would be accountable for planning and harmonization within their systems. After 2014, increase in operating costs would be a centralized responsibility.

Full responsibility would be taken by the common wealth from primary healthcare funding.

Existing federal preparations would be pushed to adjust to the rearrangement of a sector that comprises 10% of economic activity.