Federal Treasurer Joe Hockey has ruled out an increase in the GST as a way to cover a $57 billion hospital funding shortfall required to achieve his surplus budget vision, but refused to identify other funding sources.

On Saturday, Fairfax Media revealed patients could bear the brunt of the major shortfall, possibly having to endure longer waiting times in emergency departments, greater distances to hospitals, and less access to beds.

Treasurer Joe Hockey with business owner Giovanni De Romanis and local federal MP Craig at Five Dock Meat Markets on Saturday. Credit:Dallas Kilponen

The $57 billion funding gap, that threatens to blow out state budgets, lies behind the budget turnaround projected by Mr Hockey in the Intergenerational Report, released earlier this month.

"Well patients are taxpayers. It comes out of the same pocket. And ultimately taxpayers ... are going to have to bear the costs of increasing healthcare, particularly as we live longer," said Mr Hockey.