Doctors across Australia know Canberra's public hospital system as having a "horrible" workplace culture, and staff shortages leave medical officers exhausted and overworked, a Fair Work Commission hearing heard.

Medical staff spoke to the Fair Work Commission in March to help settle a wage dispute between the doctors' union and the ACT government after years of deadlock.

In a decision handed down on Monday, the Fair Work Commission agreed the ACT government's proposal would not keep wages in line with inflation and that medical staff "often work in difficult and challenging circumstances".

However, it was not persuaded that the union's proposed wage increases would address the staffing issue or that doctors should have special treatment when bargaining with the ACT government.

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