A senior health economist says the Reid report released yesterday has failed to properly acknowledge the grave state of Indigenous health in Western Australia.

The report recommends $85 million be spent on additional funding of community services, which includes Indigenous health.

Gavin Mooney, a professor of health economics at Curtin University, says while the Reid report as a whole is excellent, it has failed Aboriginal people.

Professor Mooney says Health Minister Jim McGinty must commit an extra $50 million to improving Indigenous health.

"I would appeal to Mr McGinty to give the priority to Aboriginal health that it merits and to agree, in fact, that there be an extra $50 million a year," he said.

"How that money is spent is determined according to the informed preferences of Aboriginal people."