A Coalition government would move to take full funding control of hospitals but only with agreement from the states and territories, Tony Abbott has announced.

Unveiling a health policy worth more than $3.5 bilion in Sydney today, Mr Abbott said a Coalition Government would not seize control of hospitals from the states by force, and promised to keep his hands off their GST revenue.

"We have no intention of running a tax grab - but we certainly do want to end the blame game," he said.

And he said the Coalition would move towards a 'casemix' funding system, which allocates funding via a formula based on how many and what types of patients hospitals treat.

The main points of the policy include:

$3.1b for 2,800 beds, including the 800 announced as part of the Coalition's mental health policy

$3.1b for 2,800 beds, including the 800 announced as part of the Coalition's mental health policy $165m to increase GP Medicare rebates for after-hours services

$165m to increase GP Medicare rebates for after-hours services $200m for grants to help GPs expand their practice

$200m for grants to help GPs expand their practice $300m for extra GP rebates for longer consultations

$300m for extra GP rebates for longer consultations The formation of local boards to run hospitals at a local level

The formation of local boards to run hospitals at a local level Use of the casemix funding system

"We're promising consultation, not coercion, and we're promising community initiative rather than just government dictation," Mr Abbott said.

"I think that's what we need if we're going to take the pressure off struggling families who need a decent health service."

The Coalition would fund its plan by re-allocating money from Labor's health plans.

And it would not go ahead with Labor's policy of four-hour targets for emergency department treatment.

Mr Abbott said his plan for local boards would cut down on levels of bureaucracy.

"I think we can cut out the area health authority bureaucrats and I think that will be better for everyone, because it will empower local doctors and nurses," he said.

Mr Abbott said the Coalition would deliver the new beds from "day one" of coming to Government, but could only do so with the cooperation of the states.

He warned the states that if they did not perform, they will not get the funds.

"If they want to get the money they'll have to produce the beds," he said.

"And I think that the only way to get performance out of the states is to say that the money won't come until after they've performed."

The measures for GPs would be in place of the Government's GP super-clinics, which the Coalition opposes.

Under former prime minister Kevin Rudd all states, except WA, agreed to a deal which meant they would surrender a third of GST revenue to the Federal Government to be used directly for hospital funding.

In return a Labor Government will directly fund 60 per cent of hospital costs. The states will be able to control the distribution of the funds from state pools into which state and Commonwealth funds will be put.

Prime Minister Julia Gillard says Mr Abbott's plan does not address significant health reform.

"Mr Abbott's plans, when you look at them add up to no new doctors, no new nurses, no quicker access in emergency depts, no quicker access to elective surgery and no real local control or say about what happens in local hospitals," she told AM.