Hospitals receive $131b in five-year deal

Federal and state governments have struck a new five-year hospital agreement worth more than $131 billion.

Scott Morrison announced the deal after meeting with premiers and chief ministers on Friday.

"Hospital services - there can be no greater essential than that," the prime minister told reporters in Canberra.

The federal government has committed $131.4 billion in public hospital funding to shore up the health system.

Over the next five years, there will be an extra $31.4 billion.

"There is also as part of our agreement, a funding guarantee to all states and territories to ensure no jurisdiction is left worse off as a result of the COVID-19 pandemic," Mr Morrison said.

The agreement also includes funding to provide life-saving immunotherapies for people suffering from cancer and other illnesses.

Treatments that can cost about $500,000 will be available to patients for free.

"That's what you can do when you can guarantee the essentials that Australians rely on, and the economy is what enables us to provide that support," the prime minister said.