State and territory treasurers from both sides of the political aisle are demanding the Albanese government keep its word and open up the purse strings for public hospitals.

Negotiations have turned bitter over a five-year hospital funding agreement as the federal government targets reforms to reduce spiralling National Disability Insurance Scheme costs.

Federal Health Minister Mark Butler promised to cover 42.5 per cent of public hospital running costs by 2030 and 45 per cent by 2035, in a deal struck in late 2023.

State and territory leaders claim the share of federal funding would be closer to 35 per cent under the federal government's latest offer.

The board of treasurers released a communique on Friday that revealed it commissioned a report in May on the underlying drivers of risi

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