Last week, an interim report of the National Health and Hospitals Reform Commission review into the Australian health system made 116 reform recommendations.

The report covered a range of issues, including governance of the health system, indigenous health, hospitals, primary health care, prevention, aged care, mental health, rural health and the workforce.

Dr Leon Massage, spokesman for the Australian General Practice Network Greater Monash division, said the main issues were who controlled the nation's health care system and a lack of focus on preventive medicine.

The Federal Government funds GPs and primary health care and the State Government controls hospitals, including university teaching hospitals.

Dr Massage said the divide created significant issues.

"I think there would be major benefit in one entity looking after the whole lot to avoid duplication and create better integration between hospitals and primary care. Without doubt there would be better patient outcomes."

According to the Australian Institute of Health and Welfare, about 700,000 people nationwide underwent potentially preventable hospitalisations in 2006-07.

Dr Massage said many of these hospitalisations could have been avoided with a stronger government focus on primary health care and preventive medicine.

"It's been proven time and time again that countries with robust primary health care create much better health outcomes for citizens and have shown to decrease mortality rates."