Nation-Building – A Hospital System for the Future

The Australian Government will invest more than $1.5 billion to upgrade key hospital infrastructure across Australia – meaning better patient care, more support for the health workforce, and construction jobs.

Page last updated: 12 May 2009

PDF printable version of Nation-Building – A Hospital System for the Future (PDF 28 KB)

12 May 2009

The Rudd Government will invest more than $1.5 billion to upgrade key hospital infrastructure across Australia. These investments are central to the Government’s health reform agenda to equip Australia’s health and hospital system for the 21st century.

A record $2 billion in this year’s Budget to build a world-class cancer care system in Australia will also be funded.

Every state and the Northern Territory will benefit from investments that will improve hospital facilities and expand capacity, so that patients can benefit from improved services.

Importantly, many of these projects are ready to go now. Not only will they mean better patient care and more support for our doctors, nurses, paramedics and other health professionals, they also will provide thousands of jobs in construction, stimulating the national economy.

Funding for the projects is drawn from the Health and Hospitals Fund, which the Rudd Government established to support strategic investments in health.

A total of 17 major projects are being undertaken:


  • $96.4 million to redevelop the Nepean Hospital;
  • $17.6 million to build a Clinical School and Research and Education Centre at the University of Western Sydney – part of the School of Medicine at the Blacktown Hospital; and
  • $27 million for an integrated district health service in Narrabri, bringing together hospital, primary and community health services.
  • $120 million for a new principal blood manufacturing facility in Melbourne for the Australian Red Cross Blood Service – ensuring the continuation of safe, efficient and effective delivery of the nation’s supply of blood and blood products; and
  • $13 million to build a state-of-the-art tissue banking facility for the Donor Tissue Bank of Victoria.
  • $255.7 million for a new State Rehabilitation Centre at Perth’s Fiona Stanley Hospital;
  • $180.1 million for a metropolitan hospital for the Midland area in Perth – to replace and expand services currently provided out of Swan District Hospital;
  • $8.6 million for an expansion of renal dialysis services in the Kimberley; and
  • $7.9 million to replace the current paediatric ward at the Broome Hospital.
  • $250 million to expand Townsville Hospital;
  • $104 million for the Oral Health Centre in Brisbane, which will treat 17,000 patients a year; and
  • $76 million to expand Rockhampton Hospital.
  • $200 million for the South Australian Health and Medical Research Institute to be built at the Royal Adelaide Hospital.
  • $27.8 million for a NT Medical School – medical students will be able to complete their full medical degree without having to leave the NT;
  • $13.6 million to build a new Emergency Department on the grounds of the Alice Springs Hospital and relocate the Medical Imaging Department; and
  • $18.6 million to build an accommodation complex of 50 units on the grounds of the Royal Darwin Hospital for patients and carers.
  • $40 million to create an Acute Medical and Surgical Service Unit at Launceston General Hospital.
These projects will be complemented by further health infrastructure investments to improve cancer services, support medical research and support services in rural and remote communities.

For all inquiries please contact the Minister's office – 02 6277 7220