A meeting on the federal government's health reforms could continue tomorrow as Prime Minister Kevin Rudd declares there's a long way to go before a deal is reached.
The country's premiers and chief ministers emerged from nearly four hours of discussions a short time ago, with WA Premier Colin Barnett telling ABC radio that the leaders were progressively working through each component.
Mr Barnett said so far the leaders had discussed the federal government's funding strategy for emergency departments and elective surgery.
The issue of GST revenue had not yet been discussed, with Mr Barnett saying the talks could come undone when that topic is broached.
Mr Rudd is proposing that states give up 30 per cent of their GST revenue to the federal government in return for taking 60 per cent control of hospital funding.
The claw back of GST revenue has been a no-go zone for Victoria, and WA and New South Wales has proposed to put the funds into a pool.
The Rudd government has offered one last minute sweetener to the states and territories in an effort to seal a deal today, committing to meet future additional health costs, estimated at $15.6 billion, even if the final figure comes in lower.