Following a meeting with Federal Health Minister Mark Butler on Friday, all involved parties affirmed their willingness to continue discussions. The gathering was centered on ongoing negotiations over hospital funding.

Butler said he was optimistic an agreement could be struck before Christmas.

States and territories insisted the federal government stick to a 2023 agreement that the Commonwealth would increase its share of public hospital funding to 42.5 per cent by 2030 and 45 per cent by 2035.

This week, Albanese sent letters to state and territory leaders offering a $1 billion top-up of the additional $20 billion already on the table, as well as $2 billion extra to address older patients staying in hospital for extended periods.

Western Australia Premier Roger Cook said the deal on the table was insufficient but he was keen to engage constructively with the federal government.