Frankston Hospital redevelopment

The Frankston Hospital redevelopment brings together services from across the hospital campus to provide a seamless experience for patients.

The redevelopment has delivered:

• a new tower with 12 levels of clinical services including a six-storey podium
• 130 more beds
• a new main entrance
• a new operating theatre suite with 15 theatres
• new spaces for mental health and oncology services
• new inpatient units
• a new medical imaging department
• a rooftop helipad to support transfer of critically ill patients
• more than 600 new car spaces, including a multi-deck car park
• a new kitchen and expanded logistics zone
• expanded women's and children's services, including:
  • new maternity, obstetrics and paediatric wards
  • a women's clinic
  • a special care nursery
• refurbished and expanded emergency department including:
  • a new mental health, alcohol and other drugs hub
  • a dedicated paediatric zone
• shell space for future expansion.

The redevelopment will also provide extra community benefits, including:

• a new community centre
• a childcare centre
• expansive landscaping and connection to Beauty Park
• new bus stops
• a new pedestrian crossing on Yuille Street
• new traffic lights at Hastings Road intersection
• retail and food services for visitors and staff
• improved staff amenities.

Construction of main works, including the clinical services tower was completed in late 2025. 

Several areas within the existing hospital will be refurbished throughout 2026. Finally, the new community centre and childcare centre will be finished in 2028.

The Frankston Hospital redevelopment aimed to achieve the following benefits:

More patients treated

With 130 more beds and 15 new operating theatres, the redevelopment provides capacity for approximately 35,000 more patient episodes to be treated every year.

Local jobs

The Frankston Hospital redevelopment was expected to support up to 1,700 jobs across construction and new job opportunities for healthcare workers.

More than 5,000 workers were inducted onto the redevelopment site, including 400 apprentices, trainees and cadets.

Once fully operational, the redeveloped hospital will create a range of new jobs. This will mean more doctors, nurses and support staff.

Better patient outcomes

State-of-the-art facilities and the co-location of clinical services will support Bayside Health to deliver enhanced care and improve the safety and wellbeing of patients and staff.

Local access

Increased service capacity will mean more people living in Frankston and the Mornington Peninsula will be able to access the care they need, closer to home.

The redevelopment is a model of environmental sustainability. The new tower is all-electric meaning carbon neutral power use from day one.

The redevelopment incorporates innovative energy-saving technology to preserve water, resources, and energy. The mechanical system will deliver 100 per cent fresh air throughout the new tower building. 

Other features include electric vehicle charging stations and circadian rhythm lighting.

The Frankston Hospital redevelopment was delivered by the Victorian Health Building Authority in partnership with Bayside Health and the Exemplar Health consortium.

The project was delivered as a public-private-partnership (PPP) under the Partnerships Victoria framework. This model brings together a private consortium to design, construct, finance and maintain the new facility for a period of 25 years.

Following a competitive tender process, in 2022 the Exemplar Health consortium was awarded the contract to deliver the Frankston Hospital redevelopment.

The consortium comprises:

• Capella Capital - sponsor and investor
• Aware Super - investor
• Lendlease - builder
• Honeywell and Compass Group Australia - facilities and maintenance managers.

The design team included Bates Smart, Conrad Gargett, WSP and Waterman AHW.

Frankston Hospital remains a public hospital. All clinical healthcare services will continue to be operated and provided by Bayside Health. The redeveloped hospital was renamed Peninsula University Hospital from January 2026.

Community consultation identified that increased carparking, improved access to outdoor spaces and clearer wayfinding were important to the community.

Community input was carefully considered in the development of this important project.

Learn more in the Community consultation report: a bigger, better hospital for Frankston and the Mornington Peninsula.

2023 Partnership Awards

Highly commended - Best Healthcare Project.