Independent Member for Port Macquarie, Peter Besseling, has welcomed COAG's in-principle support for a single, independent entity to oversee health expenditure but has warned the system needs more delivery of health services, not more bureaucrats.

"At this early stage, I'm not convinced an overseeing authority won't add to our already bloated health bureaucracy, which in NSW has reached about 30,000 people," Mr Besseling said.

"However, we can't keep heading down the path we're on. We need to achieve more health care for our tax dollars and we can't do that unless we stop the duplication of effort, the cost shifting and the lack of transparency.

"This new entity should put patients ahead of politics. We should know how much money has gone into the funding pool, who put it in and how much is being spent. The current system is unsustainable and provides the states and Commonwealth with the opportunity to blame each other for poor clinical outcomes, lack of infrastructure and service delivery cost blow-outs.

"I don't think anyone would deny that the current system needs an overhaul. The Australian Institute of Health and Welfare's estimates put national health expenditure at $104 billion in 2007-08, or $4878 for every man, woman and child. That sort of expenditure simply is not sustainable. We need more productive hospitals, we need greater transparency and we need greater accountability from government.

"The Australian Medical Association puts the conservative cost of wasted health dollars nationwide at between two and four billion a year - money that should be invested into better aged care, acute care and community and mental health services,"
Mr Besseling said.