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Prime Minister Malcolm Turnbull is closer to a deal with the states on health funding.Credit:Alex Ellinghausen

The Commonwealth argues that the total funding of$128 billion over five years,which includes $30 billion in new money,is very generous.

But before the meeting,Victoria,Queensland and South Australia were particularly critical of the deal on the table,indicating a preference for federal Labor's proposed 50 per cent Commonwealth spend and uncapped spending growth.

Victoria said the deal couldleave it about $2 billion worse off over five years.

Mr Turnbull said the Commonwealth's offer would provide stability and certainty for the states - a sentiment echoed by NSW Premier Gladys Berejiklian and WA's Mark McGowan - and that those states had secured an additional $9 billion and more than $3.5 billion for their hospitals.

"I look forward to other jurisdictions securing additional funding in coming months. This deal is underpinned by a reform agenda that will improve patient choice and health outcomes for all
Australians,"he said.

Queensland Premiers Annastacia Palaszczuk said her state was ready to sign up if about $170 million in back payments owed for 2014-15 and 2015-16 was paid - something Mr Turnbull said would be resolved in the next few months.

Victoria's Daniel Andrews and the ACT Chief Minister Andrew Barr also flagged concerns about the so-called reconciliation payments,or back pay they were owed,and the need for ongoing reform of the health system.

Separately,the Prime Minister said he had had constructive discussions with Ms Berejiklian and Mr Andrews about the Commonwealth buying out their stakes in the Snowy Hydro,with a deal expected later this year.

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