Article excerpt:

Prime Minister Kevin Rudd has warned a reform of the nation's health system "won't come inexpensively". The National Health and Hospitals Reforms Commission's recommendations, released on Monday, are the most significant since the introduction of Medicare.

The commission suggests the commonwealth fund and run all primary health care, basic dental care and aged care, as well as indigenous health services. The changes which are estimated to cost up to $5.7 billion a year.

Mr Rudd said he won't rule out any of the recommendations in the report or how they would be funded. "I'm just being very blunt with people, if we want to reform and improve the system, it won't come inexpensively," he told the Nine Network.

..."What I'm also trying to say to the Australian public (is) if we're going to fundamentally change our health and hospital system and prepare for the next 20 years with an ageing population ... then we've got to make sure it's properly funded as well."