The latest Closing the Gap report on bridging Indigenous disadvantage shows several targets are on track but adult incarceration rates, death by suicide and children in out-of-home care are getting worse.
Jacqueline Small from the Royal Australasian College of Physicians demanded an immediate response.
"There are heartbreakingly poor outcomes for children that must be addressed urgently to decrease incarceration rates and suicide rates," she said.
The medical organisation has also been pushing to raise the age of criminal responsibility from 10 to 14.
"More must be done to ensure children are not incarcerated for behaviours that are a direct consequence of their young age, their disability or their earlier trauma," Dr Small said.
The Northern Territory has introduced legislation to raise the age from 10 to 12. However, Dr Small said the medical evidence showed that was not enough.
The Closing the Gap report coincides with renewed debate about an Indigenous voice to parliament.
Liberal senator Andrew Bragg has blasted the National Party's decision to oppose the voice.
"Trying to bind people to a position in a public vote I think is very strange," he told ABC radio.
"Right now, it's premature to say whether you fall for it or against it. I mean, you don't even know what it is."
Senator Bragg said he believed there would be a range of views in each party, including the Nationals.
Ahead of a national vote on the voice, the government is looking to update the rules on referendums.
The proposed changes will increase the transparency of all financial donations and ban foreign donations of more than $100.
The government won't fund either side of the voice campaign at the referendum but will support an education drive and combat misinformation.
Laws requiring a "referendum pamphlet" to be sent to all Australian households will also be changed.
Assistant minister Patrick Gorman said the pamphlet was no longer necessary in the digital age.
He said modern technology allowed parliamentarians to communicate directly and regularly through television, email and social media.