The federal government is walking away from its plan to take over the public hospital system if it's not up to scratch this year, Opposition health spokesman Peter Dutton says.
Labor has said it will take over the nation's 750 public hospitals if they do not lift their game by mid-2009.
The 2007 threat was tied into $2 billion in federal funding.
Opposition health spokesman Peter Dutton says the government will not follow through with its plan even though there have been no improvements in the public hospital system.
"I think they're walking away from it," he told Network Ten.
The federal opposition wants a crackdown on the number of private health fund holders using public hospitals.
Mr Dutton said 350,000 private patients are seen in public hospitals each year.
"Where we can try and address bed blockages in our public hospitals then we should do that," he told Network Ten.
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