Unveiling the Australian government's plans to reform the country's health system on Wednesday, Australian Prime Minister Kevin Rudd said that the government intends undertaking an expenditure of 436 million Australian dollars in an attempt to help diabetics manage their health and avoid their hospitalization.

Saying that the new plan will bring about a change in the treatment line of the diabetics, Rudd elaborated that the government practices will be paid performance bonuses of up to $10,800 to keep diabetics out of hospital.

The plan will not only ease pressure on the public health system by bringing down the number of preventable hospital admissions, but will also give the diabetics the option of signing up with a GP practice, which will bear the responsibility of their care.

As per the plan, GPs could be paid a yearly $1200 for every enrolled patient, so as to cover their costs of day-to-day care and additional services.

Commenting on the "avoidable hospital admissions" of the diabetics, Rudd said: "In 2007-08, around 237,000 hospital admissions were related to complications from diabetes that could have been avoided through better management."

However, criticizing the plan and describing it as "policy on the run," the Australian Medical Association president Andrew Pesce said that the removal of fee for service would remove patient choice about their primary care and adversely affect the individual doctor-patient relationship.