SMH is reporting that GST funding will be used to fund the governments new health plan.

The Prime Minister, Kevin Rudd, will today announce the new funding arrangements which will involve the Commonwealth bypassing the states as he launches the government's long-awaited health reform agenda.

It looks like the opposition will block the move, by saying that if the government cannot run an insulation program, how can they possibly run hospitals?

The doctors union (BOO!) seems to like the idea, with the president saying that "he welcomed the idea of a single funding body".

And is not that what is needed, a single nationwide funding body, instead of each state and territory having their own?