The Morrison Government has pledged to reduce costs for x-rays and ultrasounds.

The Prime Minister says a re-elected Liberal government would reduce out-of-pocket expenses for the services.

Health Minister Greg Hunt says indexation of Medicare payments will be expanded to all ultrasound and diagnostic radiology services over three years from 1 July 2020.

The promise would see Medicare rebates for close to 90 per cent of diagnostic imaging services increase, at a cost to the commonwealth of almost $200 million.

Meanwhile, Labor says that if it wins, Australia's hospitals will get a billion-dollar upgrade.

Labor says hospital facilities are ageing and in need of a revamp.

Opposition leader Bill Shorten says every state and territory will be in line for new wards, more beds, emergency department upgrades, new operating theatres, palliative care and mental health wards.

“Our nurses and doctors and health workforce do an amazing job but they are being stretched by ageing facilities,” he said in a statement.

“There's nothing more important than your health - I want people to get the care they need as close as possible to their home.”