The national peak medical group, the A-M-A's latest report is warning of a so-called hospital exit block with reduced beds available and increased waiting times for ambulance services.
The problem arises when patients who are medically ready to be discharged cannot exit the system because they have nowhere to go.
AMA President Professor Steve Robson says long term reform of the hospital system is needed as well as an updated funding agreement between the Commonwealth and the states.
"We estimate that 285,000 patient days were lost to Exit Block. We've estimated that the costs of this could be up to potentially 2.1-billion-dollars a year for the health system. The problem is multiple but the biggest thing is older Australians who don't have residential aged care to go to. But in some circumstances it's patients who need NDIS (National Disability Insurance Scheme) care."
The President of the Royal Australian College of General Pracitioners, Dr Nicole Higgins told the National Press Club on Wednesday the health system is in crisis.
She noted a shortage of doctors in her town of Mackay.
"General practice is the cost efficient engine room of the healthcare system. There are over 27 000 GPs in Australia. 4/5 rural doctors are RACGP doctors. It takes ten years of study to become a GP. 9/10 Australians see their GP every year."
The New South Wales government says the federal government has acknowledged the issues.
The federal Health Minister says there is no doubt hospitals around the country are under pressure.
Mark Butler adds that medicare is not going to be fixed in one budget after years of cuts and neglect.
