Matthew Denholm, Tasmania correspondent
INCOMING Liberal premier Will Hodgman is firming as an unlikely ally for Kevin Rudd on health reform, as Canberra woos his support even before he is sworn into office in Tasmania.
The Prime Minster is keen to secure the support of a conservative premier to leverage Labor premiers holding out against his proposed partial federal takeover of hospitals.
There was confidence at the state and federal levels yesterday that the defeat of Labor Premier David Bartlett -- a champion of the Rudd reforms -- had not derailed Canberra's hopes of gaining Tasmania's support.
Both sides are moving quickly to negotiate, with federal Health Minister Nicola Roxon contacting Mr Hodgman on Thursday, apparently even before Mr Bartlett had publicly conceded defeat.
Mr Hodgman, expected to be sworn in as premier late next week after Mr Bartlett kept to a pledge to relinquish office if the Liberals won more votes that Labor, is keen to use the reforms to help upgrade the island's public hospitals.
He told reporters he wanted to meet Mr Rudd and to put political considerations aside as he grapples with the reforms ahead of the Council of Australian Governments meeting on April 19.
"I will look constructively at what's on the table and I will do so through the prism of what is in the best interests of Tasmanians".
Mr Hodgman also accepted the need for reform. "No one would argue that our hospital and health systems are operating effectively here in Tasmania -- things do need to happen".
The Weekend Australian understands Ms Roxon is keen to fly to Hobart for negotiations with Mr Hodgman as soon as he is sworn in, probably next Thursday.
The main barrier to Tasmania signing on is understood to be concern about the disproportionate impact on a small state of the reduced spending flexibility that comes with quarantining a share of GST revenues for health.
However, it is understood preliminary advice was that there would be a net gain to the state budget after 10 years.
Health infrastructure was a key issue at the March 20 state election and Mr Hodgman has committed his government to significant hospital capital works.
Mr Rudd said through a spokeswoman yesterday he was willing to engage with any premier willing to get behind reform.
Mr Bartlett used what was expected to be his last press conference as Premier to urge Mr Hodgman to endorse the package. "This is his first big test and it's a test that he can't afford to fail".
The state election resulted in a hung parliament, with Labor and Liberal tied on 10 seats each and the Greens on five.
Despite a push by some Labor MPs for the ALP to try to hold on to government, Mr Bartlett on Thursday won caucus support to advise the Governor to commission a Hodgman government.
The Australian