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Vic Govt abandons major hospital projects amid Budget blowout

1 min read

The Victorian Government has delayed hospital building projects amid a shortage of construction workers and a blowout in interest repayments on debt.

A plan to build two hospital towers -  Royal Melbourne and Royal Women’s Hospital - at North Melbourne's Arden development zone, a promise of the 2022 election, has been abandoned.

Instead, extra floors will be added to the Royal Melbourne and Royal Women’s Hospital existing sites in the Parkville precinct.

The new plan is expected to have the same capacity as the original project.

Investments will also be made into three big city hospital projects, including Northern Hospital in Epping, Monash Hospital, and Austin Hospital.

But an election promise of several new community hospitals announced in 2018 is "under review".

Construction of seven other hospitals is “progressing”. Hospitals in Craigieburn, Cranbourne, Phillip Island, and Sunbury Community Hospitals are due to be completed this year, with Whittlesea, Pakenham and Point Cook sites expected to be completed by 2026.

With Victoria having the largest public aged care network in Australia, the State Government has promised $31.2 million to maintain nurse to resident ratios.