The federal government has signed off on a new five-year hospital funding deal with the states. (Bianca De Marchi/AAP PHOTOS)The federal government has signed off on a new five-year hospital funding deal with the states. (Bianca De Marchi/AAP PHOTOS) Credit: AAPMedical groups have welcomed a multibillion-dollar boost to public hospitals, but further reforms are being sought to improve patient care. States and territories will receive $25 billion extra in commonwealth funding for hospitals following a meeting of national cabinet on Friday. It's $2 billion more than what the prime minister had put on the table to premiers and chief ministers earlier when renegotiating hospital funding arrangements.