$1.5 billion Building Hospitals Fund to drive new hospital projects

Western Australia's public hospital system is set to benefit from a historic transformation, with the Cook Government to green light three major new public hospital projects.
  • Cook Government set to purchase St John of God Mt Lawley Hospital for use as a public hospital in 2026, subject to the outcome of commercial negotiations
  • New era for Royal Perth Hospital and Peel Health Campus with major new construction projects to commence next year
  • Projects to be funded from $1.5 billion Building Hospitals Fund
  • New hospital capacity key to Cook Government's strategy to help Western Australians access the healthcare they need, when they need it

Western Australia's public hospital system is set to benefit from a historic transformation, with the Cook Government to green light three major new public hospital projects.

St John of God Mt Lawley Hospital is set to come into public hands, with negotiations at an advanced stage for the purchase of the 197-bed facility by the State Government.

The government will continue negotiations with St John of God Health Care with the aim of delivering new hospital capacity in 2026.

With some beds at the hospital already contracted to WA Health, this will see up to 100 additional beds online in the public system from next year, as well as eight additional operating theatres available to public patients for surgery.

In addition, the ground capacity at the hospital would provide opportunities for future expansion of healthcare services at the site.

The Cook Government has also reviewed redevelopments planned for the Royal Perth Hospital emergency department and Peel Health Campus. This review, which included an analysis of the location, timeframe for delivery and scope, was undertaken following the shifting of hospital building responsibilities to the new Office of Major Infrastructure Delivery (OMID) after the State Election in March.

As a result of the review, a new site has been selected for stage one of the Royal Perth Hospital redevelopment which incorporates the expansion of the emergency department. The new site, at S block delivers a number of benefits compared to the original project, including:

  • no disruption to current emergency department operations during the new build;
  • more emergency hospital beds;
  • dedicated mental health services; and
  • improved ambulance access, more short-term parking, and better connection to public transport.

Importantly, the emergency department block will be built as part of a new six storey block, with two floors dedicated to a new emergency department.

The extra floors will create space for additional beds and flexibility now, and for future stages of the redevelopment of the Royal Perth Hospital site.

The State Government has allocated $33 million to detailed planning for the project. Construction will commence in 2026.

For Mandurah and the Peel Region, a new hospital will replace Peel Health Campus.

Following a site analysis and deliverability assessment by the OMID, a greenfields approach was recommended. Instead of the originally scoped redevelopment of the existing Peel Health Campus facilities, a brand-new hospital will be built on a greenfields site next to the existing location.

It will allow the new hospital to be built faster, with less disruption to hospital services, and will enable the vacated facilities to be potentially transformed into additional health services in the future, such as aged care accommodation, at the end of the build. 

Construction of the new six-storey Peel Health Campus will commence in 2026, to include:

  • modernisation of the current hospital to meet contemporary standards and increase capacity;
  • an expanded 39-bay emergency department;
  • a dedicated mental health emergency centre;
  • new facilities for cancer treatment;
  • a dedicated mental health inpatient unit;
  • a dedicated palliative care unit;
  • additional inpatient beds, including a new high dependency unit;
  • new operating theatre complex; and
  • expanded public outpatient services following the transition of the hospital from private to public operation in August 2024.

$37.7 million has been allocated to undertake the detailed planning of the new health campus.

The new $1.5 billion Building Hospitals Fund is comprised of $500 million announced in September and an additional injection of $1 billion.

The Building Hospitals Fund brings the Cook Government's total health infrastructure commitment to $4.7 billion during this term of government - the largest hospital building program in the State's history.

Construction is underway on the $1.8 billion Women and Babies Hospital at Murdoch and the $471.5 million Bunbury Health Campus.

Comments attributed to Premier Roger Cook:

"This is a historic day for healthcare in Western Australia.

"Delivering new hospital capacity is a key part of ensuring all Western Australians can access the healthcare they need, when they need it, and my government is getting on with the job.

"Bringing St John of God Mt Lawley Hospital into public hands and delivering rescoped redevelopments at Royal Perth Hospital and the Peel Health Campus will significantly expand the capacity of our public system.

"These are exciting projects, that are building upon the Women and Babies Hospital and Bunbury Health Campus - projects that are already underway and set to transform our public hospital system."

Comments attributed to Deputy Premier and Treasurer Rita Saffioti:

"Our government's strong financial management enables us to deliver the infrastructure and services our community needs.

"We're building a new Women and Babies Hospital in Murdoch, negotiating to buy a hospital in Mount Lawley, and are upgrading hospitals across our suburbs and regions.

"Our government is doing everything we can to deliver new hospital capacity, and the creation of the $1.5 billion Building Hospitals Fund will enable us to deliver more exciting new projects for our public hospital system.

"These projects will transform our public system and demonstrate our government's ongoing commitment to the health of all Western Australians."

Comments attributed to Health Minister Meredith Hammat:

"This is an exciting day for Western Australia, with these three major projects set to transform our public health system.

"If negotiations with St John of God Health Care are successful, we are ready to take on this new site and make it fully available for public use for the first time.

"We'll work collaboratively with St John of God Health Care, keeping the needs of hardworking existing staff front-of-mind during the transition."

Comments attributed to Health Infrastructure Minister John Carey:

"As WA's first Health Infrastructure Minister, I have taken a fresh look at how we can improve and accelerate the delivery of major hospital projects.

"The Office of Major Infrastructure Delivery has rapidly reviewed complex builds including at Peel Health Campus and Royal Perth Hospital.

"Rescoped projects at both hospitals will deliver new facilities that will serve the public health system for decades to come, while limiting disruption during construction.

"In addition, bringing St John of God Mt Lawley Hospital into public hands will add new beds to the public system quicker than we can build them."