A new five-year health funding deal offered by the federal government will be left in suspension until after the state election.
The government presented state leaders with $128 million for the nation’s public hospitals at the Coalition of Australian Governments meeting in Canberra on Friday.
The package sees a $30 million increase in funding over the five-year period with spending capped at 6.5 per cent from 2020.
Federal Health Minister Greg Hunt said this cap was above the inflation rate for healthcare spending.
The deal was rejected by the states, except for Western Australia and NSW, arguing there was not enough money on the table.
Tasmanian Labor spokeswoman Sarah Lovell described the funding package as a bad deal for Tasmania.
"The deal that is on the table goes nowhere near making up for the cuts that happened under the Abbott and Hodgman governments," she said.
"There is no more crucial time than now to properly resource our hospital system.
"If we sign up to this deal, we are locked in for five years - locked in to inadequate funding."
Labor Leader Rebecca White said the federal government needed to replace the $1.1 billion it took from the Tasmanian health system several budgets ago.
Health Minister Michael Ferguson said as the government was in caretaker mode it was represented at the meeting but could not contribute to the debate.
"We'll be very happy to speak to the Commonwealth once the caretaker convention has passed," he said.