The public hospital sector is urging the federal government not to walk away from its much-touted $10 billion health infrastructure fund in the May budget.
As revealed by AAP on Tuesday, the government is backing away from its Health and Hospitals Fund.
It allocated $5 billion to the fund - set up to finance hospital infrastructure, medical equipment and major research facilities - in last year's budget.
A spokeswoman for Health Minister Nicola Roxon would not guarantee a further $5 billion, which was supposed to be delivered in this year's budget.
"The budget projections have clearly changed since last May," she told AAP on Tuesday.
"We have already committed $5 billion to the fund from the 2007-08 surplus, and we will be making future allocations as budget circumstances permit."
The peak body representing public hospitals, the Australian Healthcare and Hospitals Association, on Friday urged the government to stick by its commitment.
"We are extremely concerned now to hear reports that the government may fail to deliver on this commitment and not allocate the additional $5 billion promised in this budget for the fund," executive director Prue Power said.
"This funding is much overdue and is needed to ensure our health system can continue to deliver high quality care."
Ms Power said healthcare providers were counting on the funding to replace or upgrade old equipment, adopt new technologies and build new facilities.
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