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Hospitals 25 November 2020

Victorian Budget delivers $1.22 billion for health infrastructure projects

The Victorian Budget 2020-21 is investing $1.22 billion for health infrastructure projects and grants across the state.

Overview of Victorian Budget 2020-21 investment in health infrastructure

$678 million to upgrade, build and improve existing hospitals and health services

This year’s State Budget includes $678 million for health infrastructure projects in metropolitan Melbourne and regional Victoria, including:

  • $384.2 million to redevelop Warrnambool Hospital
  • $180 million for the Guaranteeing Future Energy Supply Fund
  • $66 million to begin purchasing land and commence design development for the Community Hospitals Program
  • $7.6 million to refurbish and expand maternity accommodation and critical infrastructure at Wangaratta Hospital.

$98.5 million to commence planning future hospital developments

The State Budget also provides $98.5 million to kickstart the planning of new hospitals, including:

  • $75 million to start planning and early works for the new Melton Hospital
  • $10 million to plan for the redevelopment of the Royal Melbourne Hospital at Parkville’s Melbourne Biomedical Precinct, as well as an additional site for the Royal Melbourne and Royal Women’s hospitals at the Arden Precinct
  • $5.2 million to start planning for the future expansion of Maryborough Hospital
  • $4.75 million to undertake service and capital planning for the future expansion of Werribee Mercy Hospital
  • $3.6 million to start planning a new women’s and children’s wing at University Hospital in Geelong.

$440 million in grants for hospitals and health services

Over $440 million is also being invested in grants to assist hospitals and health services replace critical infrastructure, invest in new equipment, undertake vital upgrades and install solar power, including:

Metropolitan Health Infrastructure Fund

The new $200 million Metropolitan Health Infrastructure Fund will provide funding for operating theatre refurbishments, waiting room configurations, accessible paths and ramps, additional consulting rooms, expansions projects and equipment upgrades to meet service demand.

Regional Health Infrastructure Fund

An additional $120 million is also being invested in the Regional Health Infrastructure Fund to further improve the quality of infrastructure across rural and regional health services. This additional funding will take the total value of the Regional Health Infrastructure Fund to $470 million.

Engineering infrastructure and medical equipment replacement programs and solar and LED upgrades

Metropolitan and regional health services will also share in $85 million from the Engineering Infrastructure and Medical Equipment Replacement Programs.

The programs will fund cutting-edge equipment including CT scanners, digital x-ray units, ultrasounds and heart imaging equipment.

Health services will also receive funding to replace critical infrastructure such as generators, chillers, emergency lighting, patient lifts, water and fire service upgrades.

An additional $40 million will also be invested to improve energy efficiency in public hospitals through solar and LED upgrades.

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Last updated: 28 July 2021