Anthony Albanese writes to states, telling them to rein in public hospital spending

The states and territories are on a collision course with the Commonwealth over public hospital funding, with health ministers expressing white-hot anger over a letter from the prime minister demanding they rein in spending if they want a funding deal honoured.

Anthony Albanese made the request in September, writing to state and territory leaders saying they must slash growth if they want a public hospital funding commitment implemented.

"For states and territories to realise a Commonwealth contribution of 42.5 per cent of public hospital costs by 2030-31, under the capped glide path model, it will be necessary for your government to work to reduce growth in hospital activity and costs to more sustainable levels," the letter states, according to two separate sources.

The intervention ha