The Australian Medical Association of Queensland (AMAQ) said it would negate the need for private funding to build the new Sunshine Coast University Hospital if the State Government accepted a federal plan to overhaul the health system.

Dr Mason Stevenson, AMAQ president, says 60 per cent of the total funding would be provided by the Federal Government under the plan for the hospital.

He further added that if this happens then a private partner would not be needed as the State Government would then only need to provide the other 40 per cent.

He said, "We are looking at a Federal Government prepared to put 60 per cent on the table. In the past, we have seen unwillingness or an inability of the State Government to fund for our much needed Sunshine Coast University Hospital. We have also seen difficulty finding a private partner or consortium, so it's really looking at a gift horse in the mouth."