Like her predecessor Rudd, Gillard has said that health is a priority in her agenda. She announced during the 2010 election, that there would be an increase of 270 placements for emergency doctors and nurses and 3,000 extra nursing scholarships over the following 10 years. She also said mental health would be a priority in her second term, with a $277 million suicide-prevention package which would target high-risk groups. As the election delivered a hung parliament, a $1.8 billion package was given to rural hospitals, which was agreed to by the independents to support her re-election.
In October 2010, her government introduced legislation to reform funding arrangements for the health system, with the intention of giving the Commonwealth responsibility for providing the majority of funding to public hospitals and 100 per cent of funding for primary care and GP services.[citation needed] In February 2011, Gillard announced extensive revision of the original health funding reforms proposed by the Rudd Government, which had been unable to secure the support of all state governments. The revised Gillard government plan proposed that the federal government move towards providing 50% of new health funding (and not 60 per cent as originally agreed) and removed the requirement of the states to cede a proportion of their GST revenue to the Federal Government in order to fund the new arrangement. The new agreement was supported by all state premiers and chief ministers.